EXHIBIT 10.28


                                   AGREEMENT
                                    BETWEEN
                       BELLSOUTH TELECOMMUNICATIONS INC.
                                      AND
                            BUSINESS TELECOM, INC.


                               TABLE OF CONTENTS
                               -----------------




General Terms and Conditions
Part A
     
    1.  Purpose
    2.  Term of the Agreement
    3.  Ordering Procedures
    4.  Parity
    5.  White Pages Listings
    6.  Bona Fide Request/New Business Request Process for Further Unbundling
    7.  Court Ordered Requests for Call Detail Records and Other Subscriber
        Information
    8.  Liability and Indemnification
    9.  Intellectual Property Rights and Indemnification
   10.  Treatment of Proprietary and Confidential Information
   11.  Assignments
   12.  Resolution of Disputes
   13.  Taxes
   14.  Force Majeure
   15.  Year 2000 Compliance
   16.  Modification of Agreement
   17.  Waivers
   18.  Governing Law
   19.  Arm's Length Negotiations
   20.  Notices
   21.  Rule of Construction
   22.  Headings of No Force or Effect
   23.  Multiple Counterparts
   24.  Implementation of Agreement
   25.  Filing of Agreement
   26.  Entire Agreement

Part B - Definitions

Attachment  1 - Resale
Attachment  2 - Network Elements and Other Services
Attachment  3 - Network Interconnection
Attachment  4 - Physical Collocation
Attachment  5 - Access to Numbers and Number Portability
Attachment  6 - Ordering and Provisioning
Attachment  7 - Billing and Billing Accuracy Certification
Attachment  8 - Rights-of-Way, Conduits and Pole Attachments
Attachment  9 - Performance Measurements
Attachment 10 - Agreement Implementation Template



                                           General Terms and Conditions - Part A
                                                                          Page 1

                                   AGREEMENT

          THIS AGREEMENT is made by and between BellSouth Telecommunications,
Inc., ("BellSouth"), a Georgia corporation, and Business Telecom, Inc., ("BTI")
a North Carolina corporation, and shall be deemed effective as of February 21,
2000.  This Agreement may refer to either BellSouth or BTI or both as a "Party"
or "Parties."

                              W I T N E S S E T H

          WHEREAS, BellSouth is a local exchange telecommunications company
authorized to provide telecommunications services in the states of Alabama,
Florida, Georgia, Kentucky, Louisiana, Mississippi, North Carolina, South
Carolina and Tennessee; and

          WHEREAS, BTI is or seeks to become an alternative local exchange
telecommunications company  ("CLEC") authorized to provide telecommunications
services in the states of Alabama, Florida, Georgia, Kentucky, Louisiana,
Mississippi, North Carolina, South Carolina, and Tennessee; and

          WHEREAS, the Parties wish to resell BellSouth's telecommunications
services and/or interconnect their facilities, purchase network elements and
other services, and exchange traffic specifically for the purposes of fulfilling
their obligations pursuant to sections 251 and 252 of the Telecommunications Act
of 1996 ("the Act").

          NOW THEREFORE, in consideration of the mutual agreements contained
herein, BellSouth and BTI agree as follows:

1.        Purpose

          The Parties agree that the rates, terms and conditions contained
          within this Agreement, including all Attachments, comply and conform
          with each Parties' obligations under sections 251 and 252 of the Act.
          The resale, access and interconnection obligations contained herein
          enable BTI to provide competing  telecommunications service pursuant
          to the Act,  to residential and business subscribers within the
          territory of BellSouth.  The Parties agree that BTI will not be
          considered to have offered telecommunications services to the public
          in any state within BellSouth's region until such time as it has
          ordered services for resale or interconnection facilities for the
          purposes of providing business and/or residential telecommunications
          services pursuant to the Act to customers.


                                           General Terms and Conditions - Part A
                                                                          Page 2
2.        Term of the Agreement

2.1       The term of this Agreement shall be two years, beginning February 21,
          2000, and shall apply to the state(s) of Alabama, Florida, Georgia,
          Kentucky, Louisiana, Mississippi, North Carolina, South Carolina and
          Tennessee.   If as of the expiration of this Agreement, a Subsequent
          Agreement (as defined in Section 2.2 below) has not been executed by
          the Parties, this Agreement shall continue on a month-to-month basis
          while a Subsequent Agreement is being negotiated.  The Parties' rights
          and obligations with respect to this Agreement after expiration shall
          be as set forth in Section 2.4 below.

2.2       The Parties agree that by no later than one hundred and eighty (180)
          days prior to the expiration of this Agreement, they shall commence
          negotiations with regard to the terms, conditions and prices of resale
          and/or local interconnection to be effective beginning on the
          expiration date of this Agreement ("Subsequent Agreement").

2.3       If, within one hundred and thirty-five (135) days of commencing the
          negotiation referred to in Section 2.2 above, the Parties are unable
          to satisfactorily negotiate new resale and/or local interconnection
          terms, conditions and prices, either Party may petition the Commission
          to establish appropriate local interconnection and/or resale
          arrangements pursuant to 47 U.S.C. 252.  The Parties agree that, in
          such event, they shall encourage the Commission to issue its order
          regarding the appropriate local interconnection and/or resale
          arrangements no later than the expiration date of this Agreement.  The
          Parties further agree that in the event the Commission does not issue
          its order prior to the expiration date of this Agreement, or if the
          Parties continue beyond the expiration date of this Agreement to
          negotiate the local interconnection and/or resale arrangements without
          Commission intervention, the terms, conditions and prices ultimately
          ordered by the Commission, or negotiated by the Parties, will be
          effective retroactive to the day following the expiration date of this
          Agreement.

2.4       Notwithstanding the foregoing, in the event that as of the date of
          expiration of this Agreement the parties are negotiating in good faith
          and  have converted the existing agreement  to a month-to-month term,
          the Parties have not entered into a Subsequent Agreement and either no
          arbitration proceeding has been filed in accordance with Section 2.3
          above, or the Parties have not mutually agreed (where permissible) to
          extend the arbitration window for petitioning the applicable
          Commission(s) for resolution of those terms upon which the Parties
          have not agreed, then either Party may terminate this Agreement upon
          sixty (60) days notice to the other Party.  In the event that
          BellSouth terminates this Agreement as provided above, BellSouth shall
          continue to offer services to BTI pursuant to the terms, conditions
          and rates set forth in either BellSouth's Statement of Generally
          Available Terms (SGAT) to the extent an SGAT has been approved by the
          applicable Commission(s), or the then current standard interconnection
          agreement. In the event that the SGAT or BellSouth's standard


                                           General Terms and Conditions - Part A
                                                                          Page 3

          interconnection agreement becomes effective as between the Parties,
          the Parties may continue to negotiate a Subsequent Agreement, and the
          terms of such Subsequent Agreement shall be effective retroactive to
          the day following expiration of this Agreement.

3.        Ordering Procedures

3.1       BTI shall provide BellSouth its Carrier Identification Code (CIC),
          Operating Company Number (OCN), Group Access Code (GAC) and Access
          Customer Name and Address (ACNA) code as applicable prior to placing
          its first order.

3.2       The Parties agree to adhere to the BellSouth Local Interconnection and
          Facility Based Ordering Guide and Resale Ordering Guide, as
          appropriate for the services ordered.

3.3       BTI shall pay charges for Operational Support Systems (OSS) as set
          forth in this Agreement in Attachment 1 and/or in Attachment 2, 3, 5
          and 7 as applicable.

4.        Parity

          When BTI purchases, pursuant to Attachment 1 of this Agreement,
          telecommunications services from BellSouth for the purposes of resale
          to end users, BellSouth shall provide said services so that the
          services are equal in quality, subject to the same conditions, and
          provided within the same provisioning time intervals that BellSouth
          provides to its affiliates, subsidiaries and end users.  To the extent
          technically feasible, the quality of a Network Element, as well as the
          quality of the access to such Network Element provided by BellSouth to
          BTI shall be at least equal in quality to that which BellSouth
          provides to itself.  The quality of the interconnection between the
          networks of BellSouth and the network of BTI shall be at a level that
          is equal to that which BellSouth provides itself, a subsidiary, an
          Affiliate, or any other party.  The interconnection facilities shall
          be designed to meet the same technical criteria and service standards
          that are used within BellSouth's network and shall extend to a
          consideration of service quality as perceived by end users and service
          quality as perceived by BTI.

5.        White Pages Listings

          BellSouth shall provide BTI and their customers access to white pages
          directory listings under the following terms:

5.1       Listings.  BTI shall provide all new, changed and deleted listings on
          --------
          a timely basis and BellSouth or its agent will include BTI residential
          and business customer listings in the appropriate White Pages
          (residential and business) or alphabetical directories.  Directory
          listings will make no distinction between BTI and BellSouth
          subscribers.


                                           General Terms and Conditions - Part A
                                                                          Page 4

5.2       Rates.  Subscriber primary listing information in the White Pages
          -----
          shall be provided at no charge to BTI or its subscribers and BTI will
          provide subscriber listing information to BellSouth at no charge.

5.3       Procedures for Submitting BTI Subscriber Information.  BellSouth will
          ----------------------------------------------------
          provide to BTI a magnetic tape or computer disk containing the proper
          format for submitting subscriber listings.  BTI will be required to
          provide BellSouth with directory listings and daily updates to those
          listings, including new, changed, and deleted listings,  on a magnetic
          tape, computer disk, or other mutually agreed upon means. These
          procedures are detailed in BellSouth's Local Interconnection and
          Facility Based Ordering Guide.

5.4       Unlisted/Non-Published Subscribers.  BTI will be required to provide
          ----------------------------------
          to BellSouth the names, addresses and telephone numbers of all BTI
          customers that wish to be omitted from directories.

5.5       Inclusion of BTI Customers in Directory Assistance Database.
          -----------------------------------------------------------
          BellSouth will include and maintain BTI subscriber listings in
          BellSouth's Directory Assistance databases at no charge and BTI shall
          provide such Directory Assistance listings at no charge.  BellSouth
          and BTI will formulate appropriate procedures regarding lead time,
          timeliness, format and content of listing information.

5.6       Listing Information Confidentiality.  BellSouth will accord BTI's
          -----------------------------------
          directory listing information the same level of confidentiality that
          BellSouth accords its own directory listing information, and BellSouth
          shall limit access to BTI's customer proprietary confidential
          directory information to those BellSouth employees who are involved in
          the preparation of listings.

5.7       Optional Listings.  Additional listings and optional listings will be
          -----------------
          offered by BellSouth at tariffed rates as set forth in the General
          Subscriber Services Tariff, less the wholesale discount.

5.8       Delivery.  BellSouth or its agent shall deliver White Pages
          -----------
          directories to BTI subscribers at no charge.


                                           General Terms and Conditions - Part A
                                                                          Page 5

6.        Bona Fide Request/New Business Request Process for Further Unbundling

          To the extent  BTI is a facilities based provider or a facilities
          based and resale provider, this section shall apply.  BellSouth shall,
          upon request of BTI, provide to BTI access to its network elements at
          any technically feasible point for the provision of BTI's
          telecommunications service where such access is necessary and failure
          to provide access would impair the ability of BTI to provide services
          that it seeks to offer.  Any request by BTI for access to a network
          element, interconnection option, or for the provisioning of any
          service or product that is not already available shall be treated as a
          Bona Fide Request/New Business Request, and shall be submitted to
          BellSouth pursuant to the Bona Fide Request/New Business Request
          process set forth following.

6.1       A Bona Fide Request/New Business Request shall be submitted in writing
          to BTI's Account Manager by BTI and shall specifically identify the
          requested service date, technical requirements, space requirements
          and/or such specifications that clearly define the request such that
          BellSouth has sufficient information to analyze and prepare a
          response.  Such a request also shall include BTI's designation of the
          request as being (i) pursuant to the Telecommunications Act of 1996 or
          (ii) pursuant to the needs of the business.

7.        Court Ordered Requests for Call Detail Records and Other Subscriber
          Information

          To the extent technically feasible, BellSouth maintains call detail
          records for BTI end users for limited time periods and can respond to
          subpoenas and court ordered requests for this information.  BellSouth
          shall maintain such information for BTI end users for the same length
          of time it maintains such information for its own end users.

7.1       BTI agrees that BellSouth will respond to subpoenas and court ordered
          requests delivered directly to BellSouth for the purpose of providing
          call detail records when the targeted telephone numbers belong to BTI
          end users.  Billing for such requests will be generated by BellSouth
          and directed to the bona fide requesting party.

7.2       BTI agrees that in cases where BTI receives subpoenas or court ordered
          requests for call detail records for targeted telephone numbers
          belonging to BTI end users, BTI will advise the law enforcement agency
          initiating the request to redirect the subpoena or court ordered
          request to BellSouth.  Billing for call detail information will be
          generated by BellSouth and directed to the law enforcement agency
          initiating the request.

7.3       In cases where the timing of the response to the law enforcement
          agency prohibits BTI from having the subpoena or court ordered request
          redirected to BellSouth by


                                           General Terms and Conditions - Part A
                                                                          Page 6

          the law enforcement agency, BTI will furnish the official request to
          BellSouth for providing the call detail information. BellSouth will
          provide the call detail records to BTI and bill BTI a reasonable rate
          for the information. BTI agrees to reimburse BellSouth for the call
          detail information provided.

7.4       BTI will provide BTI end user and/or other customer information that
          is available to BTI in response to subpoenas and court orders for
          their own customer records.  BellSouth will redirect subpoenas and
          court ordered requests for BTI end user and/or other customer
          information to BTI for the purpose of providing this information to
          the law enforcement agency.

8.        Liability and Indemnification

8.1       BellSouth Liability.  BellSouth shall take financial responsibility
          -------------------
          for its own actions in causing, or its lack of action in preventing,
          unbillable or uncollectible BTI revenues.

8.2       BTI Liability.  In the event that BTI consists of two (2) or more
          -------------
          separate entities as set forth in the preamble to this Agreement, all
          such entities shall be jointly and severally liable for the
          obligations of BTI under this Agreement.

8.3       Liability for Acts or Omissions of Third Parties.   Neither BellSouth
          ------------------------------------------------
          nor BTI shall be liable for any act or omission of another
          telecommunications company providing a portion of the services
          provided under this Agreement.

8.4       Limitation of Liability.
          -----------------------

8.4.1     Each Party's liability to the other for any loss, cost, claim, injury
          or liability or expense, including reasonable attorney's fees relating
          to or arising out of any negligent act or omission in its performance
          of this Agreement whether in contract or in tort, shall be limited to
          a credit for the actual cost of the services or functions not
          performed or improperly performed.

8.4.2     Limitations in Tariffs.  A Party may, in its sole discretion, provide
          ----------------------
          in its tariffs and contracts with its Customer and third parties that
          relate to any service, product or function provided or contemplated
          under this Agreement, that to the maximum extent permitted by
          Applicable Law, such Party shall not be liable to Customer or third
          Party for (i) any Loss relating to or arising out of this Agreement,
          whether in contract, tort or otherwise, that exceeds the amount such
          Party would have charged that applicable person for the service,
          product or function that gave rise to such Loss and (ii) Consequential
          Damages. To the extent that a Party elects not to place in its tariffs
          or contracts such limitations of liability, and the other Party incurs
          a Loss as a result thereof, such Party shall indemnify and reimburse
          the other Party for that portion of the Loss that would have been
          limited had the first Party included in its tariffs and contracts the
          limitations of liability that such other Party included in its own
          tariffs at the time of such Loss.


                                           General Terms and Conditions - Part A
                                                                          Page 7

8.4.3     Neither BellSouth nor BTI shall be liable for damages to the other's
          terminal location, POI or other company's customers' premises
          resulting from the furnishing of a service, including, but not limited
          to, the installation and removal of equipment or associated wiring,
          except to the extent caused by a company's negligence or willful
          misconduct or by a company's failure to properly ground a local loop
          after disconnection.

8.4.4     Under no circumstance shall a Party be responsible or liable for
          indirect, incidental, or consequential damages, including, but not
          limited to, economic loss or lost business or profits, damages arising
          from the use or performance of equipment or software, or the loss of
          use of software or equipment, or accessories attached thereto, delay,
          error, or loss of data.  In connection with this limitation of
          liability, each Party recognizes that the other Party may, from time
          to time, provide advice, make recommendations, or supply other
          analyses related to the Services, or facilities described in this
          Agreement, and, while each Party shall use diligent efforts in this
          regard, the Parties acknowledge and agree that this limitation of
          liability shall apply to provision of such advice, recommendations,
          and analyses.

8.5       Indemnification for Certain Claims.  The Party providing services
          ----------------------------------
          hereunder, its affiliates and its parent company, shall be
          indemnified, defended and held harmless by the Party receiving
          services hereunder against any claim, loss or damage arising from the
          receiving company's use of the services provided under this Agreement
          pertaining to (1) claims for libel, slander or invasion of privacy
          arising from the content of the receiving company's own
          communications, or (2) any claim, loss or damage claimed by the
          customer of the Party receiving services arising from such company's
          use or reliance on the providing company's services, actions, duties,
          or obligations arising out of this Agreement.

8.6       Disclaimer.  EXCEPT AS SPECIFICALLY PROVIDED TO THE CONTRARY IN THIS
          ----------
          AGREEMENT, NEITHER PARTY  MAKES ANY REPRESENTATIONS OR WARRANTIES TO
          THE OTHER PARTY CONCERNING THE SPECIFIC QUALITY OF ANY SERVICES, OR
          FACILITIES PROVIDED UNDER THIS AGREEMENT.   THE PARTIES DISCLAIM,
          WITHOUT LIMITATION, ANY WARRANTY OR GUARANTEE OF MERCHANTABILITY OR
          FITNESS FOR A PARTICULAR PURPOSE, ARISING FROM COURSE OF PERFORMANCE,
          COURSE OF DEALING, OR FROM USAGES OF TRADE.

9.        Intellectual Property Rights and Indemnification

9.1       No License.  No patent, copyright, trademark or other proprietary
          ----------
          right is licensed, granted or otherwise transferred by this Agreement.
          BTI is strictly prohibited from any use, including but not limited to
          in sales, in marketing or


                                           General Terms and Conditions - Part A
                                                                          Page 8

          advertising of telecommunications services, of any BellSouth name,
          service mark or trademark.

9.2       Ownership of Intellectual Property.  Any intellectual property which
          ----------------------------------
          originates from or is developed by a Party shall remain in the
          exclusive ownership of that Party.  Except for a limited license to
          use patents or copyrights to the extent necessary for the Parties to
          use any facilities or equipment (including software) or to receive any
          service solely as provided under this Agreement, no license in patent,
          copyright, trademark or trade secret, or other proprietary or
          intellectual property right now or hereafter owned, controlled or
          licensable by a Party, is granted to the other Party or shall be
          implied or arise by estoppel.  It is the responsibility of each Party
          to ensure at no additional cost to the other Party that it has
          obtained any necessary licenses in relation to intellectual property
          of third Parties used in its network that may be required to enable
          the other Party to use any facilities or equipment (including
          software), to receive any service, or to perform its respective
          obligations under this Agreement.

9.3       Indemnification.  The Party providing a service pursuant to this
          ---------------Agreement will defend the Party receiving such service
          or data provided as a result of such service against claims of
          infringement arising solely from the use by the receiving Party of
          such service and will indemnify the receiving Party for any damages
          awarded based solely on such claims in accordance with Section 8 of
          this Agreement.

9.4       Claim of Infringement.  In the event that use of any facilities or
          ---------------------
          equipment (including software), becomes, or in reasonable judgment of
          the Party who owns the affected network is likely to become, the
          subject of a claim, action, suit, or proceeding based on intellectual
          property infringement, then said Party shall promptly and at its sole
          expense, but subject to the limitations of liability set forth below:

9.4.1     modify or replace the applicable facilities or equipment (including
          software) while maintaining form and function, or

9.4.2     obtain a license sufficient to allow such use to continue.

9.4.3     In the event 9.4.1 or 9.4.2 are commercially unreasonable, then said
          Party may, terminate, upon reasonable notice, this contract with
          respect to use of, or services provided through use of, the affected
          facilities or equipment (including software), but solely to the extent
          required to avoid the infringement claim.

9.5       Exception to Obligations.  Neither Party's obligations under this
          ------------------------
          Section shall apply to the extent the infringement is caused by:  (i)
          modification of the facilities or equipment (including software) by
          the indemnitee; (ii) use by the indemnitee of the facilities or
          equipment (including software) in combination with equipment or
          facilities (including software) not provided or authorized by the
          indemnitor provided the facilities or equipment (including software)
          would not be infringing


                                           General Terms and Conditions - Part A
                                                                          Page 9

          if used alone; (iii) conformance to specifications of the indemnitee
          which would necessarily result in infringement; or (iv) continued use
          by the indemnitee of the affected facilities or equipment (including
          software) after being placed on notice to discontinue use as set forth
          herein.

9.6       Exclusive Remedy.  The foregoing shall constitute the Parties' sole
          ----------------
          and exclusive remedies and obligations with respect to a third party
          claim of intellectual property infringement arising out of the conduct
          of business under this Agreement.

10.       Treatment of Proprietary and Confidential Information

10.1      Confidential Information.  It may be necessary for BellSouth and BTI
          ------------------------
          to provide each other with certain confidential information, including
          trade secret information, including but not limited to, technical and
          business plans, technical information, proposals, specifications,
          drawings, procedures, customer account data, call detail records and
          like information (hereinafter collectively referred to as
          "Information").   All Information shall be in writing or other
          tangible form and clearly marked with a confidential, private or
          proprietary legend and that the Information will be returned to the
          owner within a reasonable time.  The Information shall not be copied
          or reproduced in any form.   BellSouth and BTI shall receive such
          Information and not disclose such Information.  BellSouth and BTI
          shall protect the Information received from distribution, disclosure
          or dissemination to anyone except employees of BellSouth and BTI with
          a need to know such Information and which employees agree to be bound
          by the terms of this Section.  BellSouth and BTI will use the same
          standard of care to protect Information received as they would use to
          protect their own confidential and proprietary Information.

10.2      Exception to Obligation.  Notwithstanding the foregoing, there will be
          -----------------------
          no obligation on BellSouth or BTI to protect any portion of the
          Information that is: (1)  made publicly available by the owner of the
          Information or lawfully disclosed by a Party other than BellSouth or
          BTI; (2) lawfully obtained from any  source other than the owner of
          the Information; or (3) previously known to the receiving Party
          without an obligation to keep it confidential.


                                           General Terms and Conditions - Part A
                                                                         Page 10

11.       Assignments

          Any assignment by either Party to any non-affiliated entity of any
          right, obligation or duty, or of any other interest hereunder, in
          whole or in part, without the prior written consent of the other Party
          shall be void.  A Party may assign this Agreement or any right,
          obligation, duty or other interest hereunder to an Affiliate company
          of the Party without the consent of the other Party.  All obligations
          and duties of any Party under this Agreement shall be binding on all
          successors in interest and assigns of such Party.  No assignment or
          delegation hereof shall relieve the assignor of its obligations under
          this Agreement in the event that the assignee fails to perform such
          obligations.

12.       Resolution of Disputes

          Except as otherwise stated in this Agreement, the Parties agree that
          if any dispute arises as to the interpretation of any provision of
          this Agreement or as to the proper implementation of this Agreement,
          either Party may petition the Commission for a resolution of the
          dispute.  However, each Party reserves any rights it may have to seek
          judicial review of any ruling made by the Commission concerning this
          Agreement.

13.       Taxes

13.1      Definition.  For purposes of this Section, the terms "taxes" and
          ----------
          "fees" shall include but not limited to federal, state or local sales,
          use, excise, gross receipts or other taxes or tax-like fees of
          whatever nature and however designated (including tariff surcharges
          and any fees, charges or other payments, contractual or otherwise, for
          the use of public streets or rights of way, whether designated as
          franchise fees or otherwise) imposed, or sought to be imposed, on or
          with respect to the services furnished hereunder or measured by the
          charges or payments therefore, excluding any taxes levied on income.

13.2      Taxes and Fees Imposed Directly On Either Providing Party or
          ------------------------------------------------------------
          Purchasing Party.
          ----------------

13.2.1    Taxes and fees imposed on the providing Party, which are not permitted
          or required to be passed on by the providing Party to its customer,
          shall be borne and paid by the providing Party.

13.2.2    Taxes and fees imposed on the purchasing Party, which are not required
          to be collected and/or remitted by the providing Party, shall be borne
          and paid by the purchasing Party.

13.3      Taxes and Fees Imposed on Purchasing Party But Collected And Remitted
          ---------------------------------------------------------------------
          By Providing Party.
          ------------------


                                           General Terms and Conditions - Part A
                                                                         Page 11

13.3.1    Taxes and fees imposed on the purchasing Party shall be borne by the
          purchasing Party, even if the obligation to collect and/or remit such
          taxes or fees is placed on the providing Party.

13.3.2    To the extent permitted by applicable law, any such taxes and/or fees
          shall be shown as separate items on applicable billing documents
          between the Parties.  Notwithstanding the foregoing, the purchasing
          Party shall remain liable for any such taxes and fees regardless of
          whether they are actually billed by the providing Party at the time
          that the respective service is billed.

13.3.3    If the purchasing Party determines that in its opinion any such taxes
          or fees are not payable, the providing Party shall not bill such taxes
          or fees to the purchasing Party if the purchasing Party provides
          written certification, reasonably satisfactory to the providing Party,
          stating that it is exempt or otherwise not subject to the tax or fee,
          setting forth the basis therefor, and satisfying any other
          requirements under applicable law.  If any authority seeks to collect
          any such tax or fee that the purchasing Party has determined and
          certified not to be payable, or any such tax or fee that was not
          billed by the providing Party, the purchasing Party may contest the
          same in good faith, at its own expense.  In any such contest, the
          purchasing Party shall promptly furnish the providing Party with
          copies of all filings in any proceeding, protest, or legal challenge,
          all rulings issued in connection therewith, and all correspondence
          between the purchasing Party and the taxing authority.

13.3.4    In the event that all or any portion of an amount sought to be
          collected must be paid in order to contest the imposition of any such
          tax or fee, or to avoid the existence of a lien on the assets of the
          providing Party during the pendency of such contest, the purchasing
          Party shall be responsible for such payment and shall be entitled to
          the benefit of any refund or recovery.

13.3.5    If it is ultimately determined that any additional amount of such a
          tax or fee is due to the imposing authority, the purchasing Party
          shall pay such additional amount, including any interest and penalties
          thereon.

13.3.6    Notwithstanding any provision to the contrary, the purchasing Party
          shall protect, indemnify and hold harmless (and defend at the
          purchasing Party's expense) the providing Party from and against any
          such tax or fee, interest or penalties thereon, or other charges or
          payable expenses (including reasonable attorney fees) with respect
          thereto, which are incurred by the providing Party in connection with
          any claim for or contest of any such tax or fee.

13.3.7    Each Party shall notify the other Party in writing of any assessment,
          proposed assessment or other claim for any additional amount of such a
          tax or fee by a taxing authority; such notice to be provided, if
          possible, at least ten (10) days prior to the date by which a
          response, protest or other appeal must be filed, but in no event later
          than thirty (30) days after receipt of such assessment, proposed
          assessment or claim.


                                           General Terms and Conditions - Part A
                                                                         Page 12

13.4      Taxes and Fees Imposed on Providing Party But Passed On To Purchasing
          ---------------------------------------------------------------------
          Party.
          -----

13.4.1    Taxes and fees imposed on the providing Party, which are permitted or
          required to be passed on by the providing Party to its customer, shall
          be borne by the purchasing Party.

13.4.2    To the extent permitted by applicable law, any such taxes and/or fees
          shall be shown as separate items on applicable billing documents
          between the Parties.  Notwithstanding the foregoing, the purchasing
          Party shall remain liable for any such taxes and fees regardless of
          whether they are actually billed by the providing Party at the time
          that the respective service is billed.

13.4.3    If the purchasing Party disagrees with the providing Party's
          determination as to the application or basis for any such tax or fee,
          the Parties shall consult with respect to the imposition and billing
          of such tax or fee. Notwithstanding the foregoing, the providing Party
          shall retain ultimate responsibility for determining whether and to
          what extent any such taxes or fees are applicable, and the purchasing
          Party shall abide by such determination and pay such taxes or fees to
          the providing Party.  The providing Party shall further retain
          ultimate responsibility for determining whether and how to contest the
          imposition of such taxes and fees; provided, however, that any such
          contest undertaken at the request of the purchasing Party shall be at
          the purchasing Party's expense.

13.4.4    In the event that all or any portion of an amount sought to be
          collected must be paid in order to contest the imposition of any such
          tax or fee, or to avoid the existence of a lien on the assets of the
          providing Party during the pendency of such contest, the purchasing
          Party shall be responsible for such payment and shall be entitled to
          the benefit of any refund or recovery.

13.4.5    If it is ultimately determined that any additional amount of such a
          tax or fee is due to the imposing authority, the purchasing Party
          shall pay such additional amount, including any interest and penalties
          thereon.

13.4.6    Notwithstanding any provision to the contrary, the purchasing Party
          shall protect indemnify and hold harmless (and defend at the
          purchasing Party's expense) the providing Party from and against any
          such tax or fee, interest or penalties thereon, or other reasonable
          charges or payable expenses (including reasonable attorney fees) with
          respect thereto, which are incurred by the providing Party in
          connection with any claim for or contest of any such tax or fee.

13.4.7    Each Party shall notify the other Party in writing of any assessment,
          proposed assessment or other claim for any additional amount of such a
          tax or fee by a taxing authority; such notice to be provided, if
          possible, at least ten (10) days prior to the date by which a
          response, protest or other appeal must be filed, but in


                                           General Terms and Conditions - Part A
                                                                         Page 13

          no event later than thirty (30) days after receipt of such assessment,
          proposed assessment or claim.

13.5      Mutual Cooperation.  In any contest of a tax or fee by one Party, the
          ------------------
          other Party shall cooperate fully by providing records, testimony and
          such additional information or assistance as may reasonably be
          necessary to pursue the contest.  Further, the other Party shall be
          reimbursed for any reasonable and necessary out-of-pocket copying and
          travel expenses incurred in assisting in such contest.

14.       Force Majeure

          In the event performance of this Agreement, or any obligation
          hereunder, is either directly or indirectly prevented, restricted, or
          interfered with by reason of fire, flood, earthquake or like acts of
          God, wars, revolution, civil commotion, explosion, acts of public
          enemy, embargo, acts of the government in its sovereign capacity,
          labor difficulties, including without limitation, strikes, slowdowns,
          picketing, or boycotts, unavailability of equipment from vendor,
          changes requested by Customer, or any other circumstances beyond the
          reasonable control and without the fault or negligence of the Party
          affected, the Party affected, upon giving prompt notice to the other
          Party, shall be excused from such performance on a day-to-day basis to
          the extent of such prevention, restriction, or interference (and the
          other Party shall likewise be excused from performance of its
          obligations on a day-to-day basis until the delay, restriction or
          interference has ceased); provided however, that the Party so affected
          shall use diligent efforts to avoid or remove such causes of non-
          performance and both Parties shall proceed whenever such causes are
          removed or cease.

15.       Year 2000 Compliance

          Each Party warrants that it has implemented a program the goal of
          which is to ensure that all software, hardware and related materials
          (collectively called "Systems") delivered, connected with BellSouth or
          supplied in the furtherance of the terms and conditions specified in
          this Agreement: (i) will record, store, process and display calendar
          dates falling on or after January 1, 2000, in the same manner, and
          with the same functionality as such software records, stores,
          processes and calendar dates falling on or before December 31, 1999;
          and (ii) shall include without limitation date data century
          recognition, calculations that accommodate same century and
          multicentury formulas and date values, and date data interface values
          that reflect the century.

16.       Modification of Agreement

16.1      BellSouth shall make available, pursuant to 47 USC (S) 252 and the FCC
          rules and regulations regarding such availability, to BTI any
          interconnection, service, or network element provided under any other
          agreement filed and approved pursuant to 47 USC (S) 252.  The Parties
          shall adopt all rates, terms and conditions concerning


                                           General Terms and Conditions - Part A
                                                                         Page 14

          such other interconnection, service or network element and any other
          rates, terms and conditions that are interrelated or were negotiated
          in exchange for or in conjunction with the interconnection, service or
          network element being adopted. The adopted interconnection, service,
          or network element and agreement shall apply to the same states as
          such other agreement and for the identical term of such other
          agreement.

16.2      If BTI changes its name or makes changes to its company structure or
          identity due to a merger, acquisition, transfer or any other reason,
          it is the responsibility of BTI to notify BellSouth of said change and
          request that an amendment to this Agreement, if necessary, be executed
          to reflect said change.

16.3      No modification, amendment, supplement to, or waiver of the Agreement
          or any of its provisions shall be effective and binding upon the
          Parties unless it is made in writing and duly signed by the Parties.

16.4      Execution of this Agreement by either Party does not confirm or infer
          that the executing Party agrees with any decision(s) issued pursuant
          to the Telecommunications Act of 1996 and the consequences of those
          decisions on specific language in this Agreement.  Neither Party
          waives its rights to appeal or otherwise challenge any such
          decision(s) and each Party reserves all of its rights to pursue any
          and all legal and/or equitable remedies, including appeals of any such
          decision(s).

16.5      In the event that any final and nonappealable legislative, regulatory,
          judicial or other legal action materially affects any material terms
          of this Agreement, or the ability of BTI or BellSouth to perform any
          material terms of this Agreement, BTI or BellSouth may, on thirty (30)
          days' written notice require that such terms be renegotiated, and the
          Parties shall renegotiate in good faith such mutually acceptable new
          terms as may be required.  In the event that such new terms are not
          renegotiated within ninety (90) days after such notice, the Dispute
          shall be referred to the Dispute Resolution procedure set forth in
          Section 12.

16.6      If any provision of this Agreement, or the application of such
          provision to either Party or circumstance, shall be held invalid, the
          remainder of the Agreement, or the application of any such provision
          to the Parties or circumstances other than those to which it is held
          invalid, shall not be effective thereby, provided that the Parties
          shall attempt to reformulate such invalid provision to give effect to
          such portions thereof as may be valid without defeating the intent of
          such provision.

17.       Waivers

          A failure or delay of either Party to enforce any of the provisions
          hereof, to exercise any option which is herein provided, or to require
          performance of any of the provisions hereof shall in no way be
          construed to be a waiver of such provisions or options, and each
          Party, notwithstanding such failure, shall have the right thereafter


                                           General Terms and Conditions - Part A
                                                                         Page 15

          to insist upon the specific performance of any and all of the
          provisions of this Agreement.

18.       Governing Law

          This Agreement shall be governed by, and construed and enforced in
          accordance with, the laws of the State of Georgia, without regard to
          its conflict of laws principles.

19.       Arm's Length Negotiations

          This Agreement was executed after arm's length negotiations between
          the undersigned Parties and reflects the conclusion of the undersigned
          that this Agreement is in the best interests of all Parties.

20.       Notices

20.1      Every notice, consent, approval, or other communications required or
          contemplated by this Agreement shall be in writing and shall be
          delivered in person or given by postage prepaid mail, address  to:

               BellSouth Telecommunications, Inc.

               CLEC Account Team
               9/th/ Floor
               600 North 19/th/ Street
               Birmingham, Alabama 35203

               and

               General Attorney - COU
               Suite 4300
               675 W. Peachtree St.
               Atlanta, GA 30375

               BTI

               Anthony M. Copeland
               Executive Vice President and General Counsel
               4300 Six Forks Road
               Raleigh, North Carolina 27609

          or at such other address as the intended recipient previously shall
          have designated by written notice to the other Party.


                                           General Terms and Conditions - Part A
                                                                         Page 16

20.2      Where specifically required, notices shall be by certified or
          registered mail.  Unless otherwise provided in this Agreement, notice
          by mail shall be effective on the date it is officially recorded as
          delivered by return receipt or equivalent, and in the absence of such
          record of delivery, it shall be presumed to have been delivered the
          fifth day, or next business day after the fifth day, after it was
          deposited in the mails.

20.3      BellSouth shall provide BTI notice via Internet posting of price
          changes and of changes to the terms and conditions of services
          available for resale.

21.       Rule of Construction

          No rule of construction requiring interpretation against the drafting
          Party hereof shall apply in the interpretation of this Agreement.

22.       Headings of No Force or Effect

          The headings of Articles and Sections of this Agreement are for
          convenience of reference only, and shall in no way define, modify or
          restrict the meaning or interpretation of the terms or provisions of
          this Agreement.

23.       Multiple Counterparts

          This Agreement may be executed multiple counterparts, each of which
          shall be deemed an original, but all of which shall together
          constitute but one and the same document.

24.       Implementation of Agreement

          If BTI is a facilities based provider or a facilities based and resale
          provider, this section shall apply.  Within 60 days of the execution
          of this Agreement, the Parties will adopt a schedule for the
          implementation of the Agreement.  The schedule shall state with
          specificity time frames for submission of including but not limited
          to, network design, interconnection points, collocation arrangement
          requests, pre-sales testing and full operational time frames for the
          business and residential markets.  An implementation template to be
          used for the implementation schedule is contained in Attachment 10 of
          this Agreement.

25.       Filing of Agreement

          Upon execution of this Agreement it shall be filed with the
          appropriate state regulatory agency pursuant to the requirements of
          Section 252 of the Act.  If the regulatory agency imposes any filing
          or public interest notice fees regarding the filing or approval of the
          Agreement, BTI shall be responsible for publishing the required notice
          and the publication and/or notice costs shall be borne by BTI.


                                           General Terms and Conditions - Part A
                                                                         Page 17

26.       Entire Agreement

          This Agreement and its Attachments, incorporated herein by this
          reference, sets forth the entire understanding and supersedes prior
          Agreements between the Parties relating to the subject matter
          contained herein and merges all prior discussions between them, and
          neither Party shall be bound by any definition, condition, provision,
          representation, warranty, covenant or promise other than as expressly
          stated in this Agreement or as is contemporaneously or subsequently
          set forth in writing and executed by a duly authorized officer or
          representative of the Party to be bound thereby.

          This Agreement may include attachments with provisions for the
          following services:

          Network Elements  and Other Services
          Local Interconnection
          Resale
          Collocation

          The following services are included as options for purchase by BTI.
          BTI shall elect said services by written request to its Account
          Manager if applicable.
          Optional Daily Usage File (ODUF)
          Enhanced Optional Daily Usage File (EODUF)
          Access Daily Usage File (ADUF)
          Line Information Database (LIDB) Storage
          Centralized Message Distribution Service (CMDS)
          Calling Name (CNAM)

IN WITNESS WHEREOF, the Parties have executed this Agreement the day and year
above first written.

BellSouth Telecommunications, Inc.           Business Telecom, Inc.


     /s/ Jerry Hendrix                              /s/ Anthony M. Copeland
- -----------------------------           ----------------------------------------
          Signature                                     Signature


        Jerry Hendrix                               Anthony M. Copeland
- -----------------------------           ----------------------------------------
           Name                                           Name


        Senior Director                 Executive Vice President/General Counsel
 ----------------------------           ----------------------------------------
          Title                                          Title


          02/21/00                                February 16, 2000
- -----------------------------           ----------------------------------------
            Date                                          Date