AT&T Expands Internet-based Phone Service to 10 States

AT&T Corp. on Wednesday announced it has expanded Internet-based phone service to 10 states, bringing to 72 the number of the markets where AT&T CallVantage is available.

AT&T, the biggest long-distance phone company, has pledged to provide consumers Internet-based phone service in 100 markets by the end of September. The Bedminster, N.J., company provides AT&T CallVantage in 22 states.

AT&T has expanded service to Washington D.C.; Wilmington, Del.; Indianapolis and Muncie, Ind.; Kansas City, Kan.; Baltimore; Minneapolis/St Paul; St. Louis; Charlotte, Greensboro and Raleigh, N.C.; Omaha, Neb.; Allentown and Philadelphia, Pa.; and Chattanooga, Knoxville and Nashville, Tenn. The phone company also has introduced Internet-based service in Jersey City, Monmouth, and Trenton, N.J.; and Albany, Buffalo, Glens Falls, Rochester, Syracuse and Utica-Rome, N.Y.

AT&T also provides local residential service over the traditional network to about 4.3 million customers, but federal rules that granted the company wholesale access to the biggest local phone networks at discounted rates have expired. Last week AT&T disclosed it would stop competing for local and long-distance customers in seven states: Arkansas, Louisiana, Missouri, New Hampshire, Ohio, Tennessee and Washington.

Through the expansion of AT&T CallVantage, however, AT&T is marketing Internet-based service in some of those states. Consumers, though, must have a high-speed Internet connection.

Citing changes in regulations and increased pricing pressure in its business unit, AT&T last week projected 2004 revenue of between $29.5 billion and $30.5 billion. Earlier this year, the company forecast 2004 revenue to decline 7 percent to 10 percent from 2003 revenue of $34.5 billion.

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