Rivals of BellSouth Corp. oppose a bill moving quickly through the state Legislature that would limit their access to BellSouth's high-speed Internet services.

The bill would make clear that high-speed Internet service is exempt from state regulation. That means BellSouth wouldn't have to share its high-speed services, referred to as broadband, with competitors.

Competitors say the legislation would limit access to all-important BellSouth lines and force them out of the market.

"It gives them (BellSouth) more flexibility and ability to do things we believe would hurt the competitive market," said Jack Pringle, who represents a group called the Competitive Carriers of the Southeast.

Pringle's group includes New Jersey-based AT&T, Missouri-based NuVox Communications and Greenville-based NewSouth Communications.

BellSouth officials, though, said that unless high-speed Internet services are protected, the company has little incentive to improve its network.

"(The bill) lets us know that if we spend money to put in equipment to provide broadband services, we're not going to have to give that away," said Harry Lightsey, president of BellSouth's South Carolina operations.

The South Carolina bill is part of a larger battle between the regional Bells and their rivals over how much access the Bell companies have to provide.

BellSouth, headquartered in Atlanta, is the former monopoly and dominant provider of telecommunications in the South.

In 1996, the federal government forced the regional Bell companies to open their local lines to competitors. In exchange, the Bells have been allowed to offer long-distance service in their home markets.

Later this month, the Federal Communications Commission will decide how far the Bells must go in providing access to competitors. The federal agency is expected to provide guidance on new services such as high-speed Internet.

Most households do not directly use high-speed Internet services, but it's a fast-growing business. Broadband can be used to deliver a variety of services, including video, music, data and advanced voice communications.

The South Carolina bill would make clear that high-speed Internet services remain unregulated at the state level by the S.C. Public Service Commission.

The bill appears to have strong support in the General Assembly. The House passed the bill this week, less than a month after it was introduced.

A Senate subcommittee said Thursday it would look at amendments to the bill but would support the legislation.

State Rep. Harry Cato, R-Greenville and sponsor of the House bill, said the measure would ensure South Carolina receives top priority when BellSouth upgrades its facilities for high-speed Internet services.

"If they're going to invest in their infrastructure, I want it to be in South Carolina," Cato said.

BellSouth rivals, though, said the company is using the threat of pulling investments as a smokescreen.

BellSouth said its investments in South Carolina are expected this year to be about half of the $300 million it spent in 2000. But the company's rivals point to different numbers showing BellSouth already is aggressively pushing high-speed Internet.

In 2002, BellSouth added about 400,000 high-speed Internet customers in its entire service area to pass the 1 million mark.

"It's a nice game of playing chicken, but it's really not consistent with what BellSouth is doing," said John Ivanuska of Missouri-based Birch Telecom, which started moving into the Southeast in 2001.

Pringle said BellSouth could use the definition of broadband in the bill to cut competitors out of other services.

Broadband services and traditional voice services are delivered over the same network. Separating them can be difficult, Pringle said.

At the least, the General Assembly should wait until the Federal Communications Commission gives its update on how the Bells should be regulated, he said.

"There's no compelling reason this needs to take place so fast," Pringle said.

BellSouth said it's not trying to use the bill to cut competitors from traditional services. It wants to draw a line on new services, said Gregg Morton, a South Carolina vice president for BellSouth.

BellSouth already has its hands full competing with cable companies, which aren't regulated for their high-speed Internet services, he said. Cable high-speed services, such as AOL-TimeWarner's Road Runner, have outpaced the Bells in signing up customers.

In new areas, like high-speed Internet, BellSouth shouldn't be hampered by old rules, Morton said. "I think the customer benefits when you have free, open competition in the marketplace," he said.

But rivals said BellSouth's moves are anti-competitive. "In some ways, it boils the market down to the cable companies and the Bell companies," said AT&T spokesman Gene Regan. "Do we really want to do that?"

Reach Collier at (803) 771-8307 or jcollier@thestate.com.