Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: FRIDAY, October 27, 1995 TAG: 9510270133
SECTION: BUSINESS PAGE: B8 EDITION: METRO
SOURCE: BLOOMBERG BUSINESS NEWS
DATELINE: NEW YORK LENGTH: Medium
AT&T Corp. said it will offer local phone service nationwide for the first time, competing against the seven regional Bell companies for a share in the $90 billion a year local phone market.
The nation's largest long-distance company said Thursday it will ask regulators in Connecticut for permission to offer local phone service there, beginning next year. It has also sought permission in California, Michigan and Illinois. AT&T now provides local phone service only in Rochester, N.Y.
The announcement is AT&T's first major step since it said last month that it will split into three businesses under a sweeping restructuring. The move also was seen as political, as lawmakers in Washington debate legislation to increase competition in the local phone market.
``This is the new AT&T Corp. speaking right now - the lean, mean, focused company that wants to be the full-service provider of wireless, local and online'' services, said Brian Adamik, analyst at Yankee Group, a market research firm in Boston. ``It's their first public statement that the local [phone market] is real important to them.''
On Sept. 20, AT&T said it will split into three companies: AT&T Corp., which will provide telecommunications services, a manufacturer of phone equipment and a maker of mainframe computers and automated teller machines.
Pending federal legislation also prompted Thursday's announcement. Lawmakers are debating legislation that will let long-distance companies compete against the Bells in local phone markets and open up the long-distance market to the Bells.
While AT&T aims at the local phone market, it's simultaneously doing everything in its power to keep the Baby Bells out of the $70 billion a year U.S. long-distance market, where it has a 60 percent share.
AT&T is the latest long-distance company to jump into the local phone market. MCI Communications Corp., the No. 2 U.S. long-distance company, is building local fiber-optic networks, while No. 3 Sprint Corp. already provides local phone service.
by CNB