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AT&T Pushes Into Local Business Phone Market

Move furthers competition in telecommunications industry.

By James Niccolai, PCWorld   

The services are built on leasing agreements AT&T has hammered out with local carriers under terms of the Telecommunications Act of 1996. Both services lack certain features that are still under negotiation with federal regulators and local carriers, officials said. %dquotThese services are an impressive first step, but only a first step, in achieving the goals of the Telecommunications Act,%dquot said Jeff Weitzen, AT&T%squots executive vice president for business markets, in a teleconference announcing the services.

AT&T Business Local Service, set to be launched in California on February 3, is described as a %dquotfull-featured%dquot service for businesses that have monthly phone bills below $2500. The service is offered via Pacific Bell%squots network, which covers 80 percent of phone lines in California, officials said. It will be extended to include the rest of California and other states in coming months.

AT&T Digital Link, aimed at larger companies that have existing dedicated links to AT&T%squots digital network, is available today in 35 states, with plans to expand into 10 more states this year.

Digital Link is an outbound-only service, and its features are more limited than those of Business Local Service, although the digital network enables higher quality data, fax and voice calls, officials said. %dquotThe law wouldn%squott allow discounts combining long distance and local calls, and Digital Link won%squott rout most incoming local calls or include 800, 900 or 911 [emergency service] calls,%dquot Weitzen said.

Digital Link is expected to include incoming calls by the end of the summer, and toll free and emergency numbers by the fourth quarter, officials said.

Business Local allows volume discounts by combining local and long distance bills, officials said. Other services include call forwarding, speed dialing and caller ID.

AT&T is testing local residential services in Sacramento, California, but would not say when a service for consumers will be rolled out.

AT&T made no secret that its access into the local market was made no easier by the Baby Bells, and officials today called on them to remove certain %dquotroadblocks%dquot to fair competition. Some of the issues include reasonable pricing, access to electronic interfaces, and fair performance standards. Specifically, AT&T in December filed a complaint against Pacific Bell with the California Public Utilities Commission, alleging it has dragged its heels in providing lines, said Phil Osman, AT&T%squots vice president of law and government affairs. Talks since then have made %dquotsome progress,%dquot he said.

According to officials, key benefits of both AT&T services include simplified pricing; one-stop billing for local and long-distance, wireless, and Internet services; and a simplified pricing scheme. Businesses in California customers will pay $10.32 a month per line for Business Local, plus less than 2 cents a minute for local calls, regardless of time of day or calling zone, officials said.

AT&T Digital Link, which officials said can be implemented with minor software changes to a customer%squots PBX, will charge for outbound calls in six-second implements, with similarly organized flat rates. Rates will vary from state to state. Trials for Digital Link began in October with 2,500 customers, officials said.