This excerpt taken from the T 10-K filed Feb 26, 2007.
Exercise of Option. An Option may be exercised by properly completing and actually delivering to BellSouth an exercise form prescribed by the Administrator for this purpose, together with payment in full of the Option Price for the Shares the Participant desires to purchase through such exercise in the manner specified in the exercise form. Payment may be made:
(i) in cash or its equivalent (e.g., by check);
(ii) in BLS Shares or Latin America Shares, as the case may be, having a Fair Market Value equal to the aggregate Option Price for the Shares being purchased and satisfying such other requirements as may be imposed by the Administrator, provided, that such Shares have been held by the Participant for no less than six months (or such other period as established from time to time by the Administrator or generally accepted accounting principles);
(iii) partly in cash and partly in such Shares;
(iv) through the delivery of irrevocable instructions to a broker to deliver promptly to BellSouth an amount equal to the aggregate Option Price for the Shares being purchased; or
(v) in the form of other property as determined by the Administrator.
Any Shares which are tendered in payment shall be valued at their Fair Market Value on the Settlement Date.