Emergency Response and Wireless Location Systems
by Manlio Allegra
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AT&T Plans a Vonage-style Consumer VoIP Service
AT&T is currently testing a "bring your own access" consumer VoIP service similar to the Vonage model, said David Dorman, AT&T Chairman and CEO, speaking at this week's Morgan Stanley Global Media & Communications Conference in Boston. Dorman sees great potential in such an AT&T branded, consumer VoIP service because of the "many interesting voice features it could offer," like "pick your own area code," "phone number for life," and the ability to reach the service from anywhere over the Internet. Internal testing of the hosted VoIP service is underway at AT&T. Dorman expects these trials will be expanded soon.
Meanwhile, AT&T plans to significantly increase its consumer and business UNE-p presence nationwide. AT&T is currently serving 1 million small business phone lines and more than 3 million residential customers in 13 states, primarily using UNE-p facilities. The company will offer its "All In One" business plan and its residential "One Rate USA" bundled service in 35 states by year-end. Dorman credited recent technology improvements for greatly increasing its efficiency in selling UNE-p based services. In particular, Dorman said the company is able to more accurately target potential customers for its bundled plans. A full 90% of UNE-p customers choose the local + long distance bundle. AT&T set new records for consumer line additions in July and August. Other highlights from Dorman's presentation included:
- a corporate restructuring has reduced the layers of management at AT&T from 14 to 7. A full 40% of managers were asked to leave the company.
- The positive cash flow trend at AT&T remains strong and the company continues to pay off its debt. By the end of the year, the company will have $10 billion in long term liabilities, compared to $60 billion at the peak.
- Regarding the FCC's recently issued Triennial Review order, Dorman said he was "not at all surprised" that the RBOCs would continue the legal fight on UNE-p. He believes that most of the state public utility commissions will uphold UNE-p because "its good for competition." Dorman said the best argument in favor of UNE-p is that "the RBOCs have responded by lowering prices and becoming more creative in their service bundles -- all of which is good for consumers."
- On the broadband side of the FCC ruling, Dorman anticipates a new round of litigation because the "RBOCs got what they asked for, not what they wanted." Regarding potential FTTP deployments by the RBOCs, Dorman feels that the economics "must be pretty daunting, unless they can capture 30% or more of the video business," which he doubts.
- Regarding major mergers/acquisitions in the industry, Dorman expects a new wave of consolidation will help address the on-going supply vs. demand imbalance. He offered no predictions as to how or when the M&A process could get restarted.
http://www.att.com
09-Sep-03
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