2 large phone companies seek higher digital rates; critics see damage to a fast Internet link

Article Abstract:

Pacific Bell and US West have proposed rate increases for ISDN service, a move that critics say will leave the field open for modems to be offered by cable television companies. ISDN allows users to connect to the Internet at speeds four times faster than analog modems. The technology is relatively inexpensive, costing only $10 more per month than standard telephone lines. ISDN adoption has been slow because telephone carriers were slow to recognize the demand for the service and have priced it beyond the reach of most consumers. Critics contend that the proposed increases will drive consumers to the even faster cable modems, which are estimated to cost $40 monthly. Pacific Bell's proposal states that the company must raise fees because customers who pay a flat rate for night use are using 47 hrs a month instead of the 15 hrs the company had estimated. The company also claims that users are farther away from switching stations than anticipated and that this increases costs.

Wired Telecommunications Carriers, Telephone Communications, Prices and rates, Telephone services, AT&T Inc., U S WEST Inc., USW, Integrated Services Digital Network, Company pricing policy, ISDN, ISDN (Network standards)

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Bell companies assail AT&T's Internet plan

Article Abstract:

The local Bell telephone companies object to AT&T's Internet plan because it exploits a regulation that permits AT&T to use their local telephone lines at no cost. AT&T must pay the local Bell companies an access fee every time a customer makes a long-distance voice call because the call travels over local lines before reaching AT&T's network. However, computer connections over the local lines are free, a provision passed in 1983 to encourage the use of the Internet when it was in its infancy. The local carriers have been unable to to remove the provision despite attempts in 1987 and 1989. The local carriers say their lines are not capable of sustaining the kind of use that AT&T foresees. AT&T's plan offers customers five hours of free Internet access for a year, followed by a monthly rate of $19.95 for unlimited access. The company already has 20 million customers with modems.

AT&T Corp., Local telephone services, Company services, Internet access, Local telephone service

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AT&T may have edge in future on line

Article Abstract:

AT&T's on line strategy may allow the company to shift the power base in the information industry. AT&T brings $5 billion in profits from an annual revenue of $75 billion as it focuses its energies on developing products and services for existing technologies. AT&T's digital network handles about 185 million voice and data transfers daily, and the largest volume of calls comes from 800-number users. AT&T sees these calls as electronic commerce and wants to create a seamless voice to data transition. The newly introduced Worldnet Internet service demonstrates AT&T's recognition of the rapidly growing customer base on the Internet. Computers linked to the Internet grew to 6.64 million in mid-1995, up from 130,000 in 1990, and each link could mean anywhere from one to thousands of users. Analysts believe AT&T wants to capture 60% of the Internet market share by 1997 or 1998. .

Planning, Internet, Market share, Information services, Information services industry, Digital communications, American Telephone and Telegraph Co., Company business planning, Digital communication, Company Business And Marketing

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