Posted on 07/21/2004 9:29:43 AM PDT by HAL9000
NEW YORK (Reuters) - AT&T Corp.'s board is considering phasing out local and long-distance phone service to U.S. consumers, a potential watershed for a company that until 20 years ago had a virtual monopoly on the country's phone service, according to a newspaper report Wednesday.AT&T's current management team, led by Chairman and Chief Executive David Dorman, has apparently reached a consensus that the company's future lies entirely with corporate and business customers, the Wall Street Journal said.
The board of directors at AT&T was expected to discuss the possible move at a meeting that began Tuesday night and is to continue Wednesday, the newspaper said, citing unspecified people familiar with the matter.
Any such plan could be modified, or rejected altogether, the Journal said.
AT&T would not cut off its existing 35 million residential customers under such a plan. Instead, it would cease marketing residential phone service to consumers. Without advertising and the barrage of telephone and mail solicitations to consumers, those customers would fall off significantly over time, according to the report.
An AT&T representative could not immediately be reached for comment.
Last month, AT&T said it would stop competing for local and long-distance residential customers in seven states after a court threw out regulations giving it cheap access to the dominant local telephone networks. The company said it would continue to sell those services to business customers and current residential customers.
Copyright 2004 Reuters All rights reserved.
Who would ever have thought that this would come to pass?
It's alright with me. I have stopped using AT$T (err I mean AT&T) years ago
Just another example of stupid management at AT&T that has managed to screw up everything they've touched since 1984
It's a sorry development, but the Bell monopolies have done everything possible to destroy competition.
Are they still around?
The baby bells have had to subsidize AT&T and other carriers for years. No more. New pricing prevents AT&T from achieving a high rate of return. That is the real reason for the pending "disconnect".
retired SBC Manager
Hmmm... I use AT&T long distance for $25/mo flat rate and unlimited calling. Are there better plans?
I work for a CLEC (competitive local exchange carrier), and not entirely certain how to view this...
Possibly more business for our consumer segment, or a more formidable and profitable competitor to fight on the business side?
In any event, having been in telecom since the divestiture of AT&T it truly is amazing how far things have changed.
Me, too! When Verizon introduced long distance service, I told AT&T goodbye.
"Polyester Ed" Whitacre should be locked up in prison. Or taken out back and horsewhipped. I can't decide.
Good riddance. I don't know of a company that I think less of that AT&T.
AT&T is not the sharpest tools in the shed. About 3.5 years ago I canceled a AT&T calling card that had a small positive balance of $1.23. They owe me money. I get a statement from them every month stating this fact and the fact that this card is closed. I have moved without giving a change of address, they found out my new address. I have called asking for them to send a check, they said they would, they have not. I now am just going to sit back and see how long they will keep sending these wastes of postage to me.
Years ago, I was a direct report to Dave Dorman at a company in Atlanta called Isacomm.....
They are anticipating the pressure of VoIP residential services in the next few years and the squeezed margins for the residential market and have evidently reached the conclusion of "why bother".
NeverGore
I'm surprised you would say that.
My recollection is that AT&T built and paid for most of the Bell network decades ago.
Judge Greene took the network from AT&T and gave it to the Bells - who have basically let it go to rot.
They recouped all that on lease charges.
Or taken out back and horsewhipped.
Along with panties on his head. Abu Graib comes to mind.
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