| BUSINESSWEEK ONLINE : DECEMBER 13, 1999 ISSUE | ||||||||
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| NEWS: ANALYSIS & COMMENTARY
Four Fronts for AT&T LONG DISTANCE Prices in AT&T's core voice business, representing 67% of revenues, are plunging: This summer, AT&T was forced to lower the price on its flagship calling plan to 7 cents a minute. Margins will sink faster as the regional Bells begin to enter the market, probably in 2000. WIRELESS The top line at AT&T's wireless unit is growing 40% a year. Its Digital One Rate plan pioneered the idea of flat-rate nationwide pricing, but it faces tough competition from Sprint PCS. Bell Atlantic and Airtouch Vodafone are combining forces to create a new national carrier, too. CABLE AT&T plans to offer local phone service, high-speed Internet access, digital TV, e-commerce, and services for small business over its up-graded cable plant. Even if the technology works as well as AT&T claims, the company must achieve its goal of signing up millions of users. INTERNATIONAL AT&T is playing catch-up with MCI WorldCom and other rivals in Europe, Asia, and other markets outside the U.S. It's betting on a $10 billion joint venture with British Telecom to do better than past international joint efforts, which were ripped apart by the competing interests of other AT&T partners. _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ BACK TO TOP |
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RELATED ITEMS Is AT&T Ready for Liftoff? TABLE: Four Fronts for AT&T Commentary: AT&T: To Track or Not to Track INTERACT E-Mail to Business Week Online | |||
