Close
  • Latest News
  • Artificial Intelligence
  • Big Data and Analytics
  • Cloud
  • Networking
  • Cybersecurity
  • Applications
  • IT Management
  • Storage
  • Sponsored
  • Mobile
  • Small Business
  • Development
  • Database
  • Servers
  • Android
  • Apple
  • Innovation
  • Blogs
  • PC Hardware
  • Reviews
  • Search Engines
  • Virtualization
Read Down
Sign in
Close
Welcome!Log into your account
Forgot your password?
Read Down
Password recovery
Recover your password
Close
Search
Logo
Logo
  • Latest News
  • Artificial Intelligence
  • Big Data and Analytics
  • Cloud
  • Networking
  • Cybersecurity
  • Applications
  • IT Management
  • Storage
  • Sponsored
  • Mobile
  • Small Business
  • Development
  • Database
  • Servers
  • Android
  • Apple
  • Innovation
  • Blogs
  • PC Hardware
  • Reviews
  • Search Engines
  • Virtualization
More
    Home Applications
    • Applications

    AT&T May Hang Up Local Calls

    By
    eWEEK EDITORS
    -
    February 12, 2001
    Share
    Facebook
    Twitter
    Linkedin

      The outlook for local telephone competition dimmed last week as AT&T threatened to retreat from the field and the industrys chief regulator signaled what could be the onset of a new Darwinian struggle among the survivors.

      Marking the fifth anniversary of the 1996 Telecommunications Act, designed to create local phone competition, AT&T Chairman C. Michael Armstrong and Federal Communications Commission Chairman Michael Powell offered contrasting views on the need for government intervention.

      Saying his company cannot compete in local phone service unless the power of the regional Bells is reined in, Armstrong demanded lower access fees and a possible breakup of the Bells into separate wholesale and retail units.

      “If nothing changes, we will be forced to shut down our local service business in New York and Texas,” Armstrong said. “We lose money on every customer we win.”

      But Powell indicated he will not be rushing to the aid of AT&T anytime soon, detailing a deregulatory attitude toward the Bells and cable companies that could mean death to struggling competitive local carriers that are less well-financed than AT&T.

      “I do not believe deregulation is a dessert you serve after youve eaten your vegetables,” Powell said. “Its not a reward for competition, its an incentive for competition.”

      While AT&Ts circumstances are not as dire as the upstart local carriers, its chairman appears to be under siege as he attempts to undo the combination of cable, Internet, wireless, long-distance and local phone companies he cobbled together over the last three years.

      In a telephone meeting of 150 analysts and institutional investors, representing 680 million shares, or a 20 percent stake, in AT&T, the AFL-CIO and the Communications Workers of America pitched its plan to prevent the breakup of AT&T into four companies. While calling for new management, the organizers of the event said they will lobby the AT&T board to preserve the company and continue the original bundling strategy.

      Among the obstacles to the breakup is the fact that AT&T would need to win new franchise agreements for its broadband operations from thousands of local governments, said Joseph Van Eaton, an attorney.

      Meanwhile, rival WorldCom hopes to distance itself from declining long-distance revenue. Its fourth-quarter profits fell 44 percent, as weakness in long-distance offset higher data, Internet and international sales.

      eWEEK EDITORS
      eWeek editors publish top thought leaders and leading experts in emerging technology across a wide variety of Enterprise B2B sectors. Our focus is providing actionable information for today’s technology decision makers.
      Get the Free Newsletter!
      Subscribe to Daily Tech Insider for top news, trends & analysis
      This email address is invalid.
      Get the Free Newsletter!
      Subscribe to Daily Tech Insider for top news, trends & analysis
      This email address is invalid.

      MOST POPULAR ARTICLES

      Latest News

      Zeus Kerravala on Networking: Multicloud, 5G, and...

      James Maguire - December 16, 2022 0
      I spoke with Zeus Kerravala, industry analyst at ZK Research, about the rapid changes in enterprise networking, as tech advances and digital transformation prompt...
      Read more
      Applications

      Datadog President Amit Agarwal on Trends in...

      James Maguire - November 11, 2022 0
      I spoke with Amit Agarwal, President of Datadog, about infrastructure observability, from current trends to key challenges to the future of this rapidly growing...
      Read more
      IT Management

      Intuit’s Nhung Ho on AI for the...

      James Maguire - May 13, 2022 0
      I spoke with Nhung Ho, Vice President of AI at Intuit, about adoption of AI in the small and medium-sized business market, and how...
      Read more
      Applications

      Kyndryl’s Nicolas Sekkaki on Handling AI and...

      James Maguire - November 9, 2022 0
      I spoke with Nicolas Sekkaki, Group Practice Leader for Applications, Data and AI at Kyndryl, about how companies can boost both their AI and...
      Read more
      Cloud

      IGEL CEO Jed Ayres on Edge and...

      James Maguire - June 14, 2022 0
      I spoke with Jed Ayres, CEO of IGEL, about the endpoint sector, and an open source OS for the cloud; we also spoke about...
      Read more
      Logo

      eWeek has the latest technology news and analysis, buying guides, and product reviews for IT professionals and technology buyers. The site’s focus is on innovative solutions and covering in-depth technical content. eWeek stays on the cutting edge of technology news and IT trends through interviews and expert analysis. Gain insight from top innovators and thought leaders in the fields of IT, business, enterprise software, startups, and more.

      Facebook
      Linkedin
      RSS
      Twitter
      Youtube

      Advertisers

      Advertise with TechnologyAdvice on eWeek and our other IT-focused platforms.

      Advertise with Us

      Menu

      • About eWeek
      • Subscribe to our Newsletter
      • Latest News

      Our Brands

      • Privacy Policy
      • Terms
      • About
      • Contact
      • Advertise
      • Sitemap
      • California – Do Not Sell My Information

      Property of TechnologyAdvice.
      © 2022 TechnologyAdvice. All Rights Reserved

      Advertiser Disclosure: Some of the products that appear on this site are from companies from which TechnologyAdvice receives compensation. This compensation may impact how and where products appear on this site including, for example, the order in which they appear. TechnologyAdvice does not include all companies or all types of products available in the marketplace.

      ×