A traffic jam on AT&T path to cyberspace: popularity of software overtakes inventory. (AT&T's new Worldnet Internet-access service) (Internet

Article Abstract:

The popularity of AT&T's new Worldnet Internet-access service has caused a shortage of the service's start-up software, which 212,000 customers have requested since Worldnet's announcement on Feb 27, 1996. To keep potential customers happy, AT&T threw a grand-opening party at its facilities in Bridgewater, NJ, on Mar 14, 1996. Analysts claim it is dangerous for AT&T to disappoint even a small percentage of its 90 million business and residential telephone customers as they look for an Internet service provider. Microsoft moved slowly into the online services market with its Microsoft Network, partly in an attempt to avoid alienating too many early users with erratic service and little information to offer. AT&T originally planned to offer the service to anyone who wanted it by Mar 14, 1996; AT&T VP of Worldnet Services Tom Evslin says the software shortage was planned to keep the service from being overwhelmed and to ensure the same high quality offered by the company's long-distance telephone service.

Planning, Online services, Information services, Information services industry, Online Service Introduction

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AT&T profit rises as bill payments lag; flat-rate plan helps lift operating income

Article Abstract:

AT&T reports a 14.2% rise in 4th qtr income, to $1.24 billion, due to the company's successful flat-rate calling plan, but earnings suffered because users are not promptly paying their bills. Analysts had anticipated earnings of approximately $0.80 per share, but AT&T reported $0.76 per share. AT&T's stable finances soothed analyst fears that the company would not be able to reign in declining market share and management problems, but many wonder how the company will function in the deregulated telecommunications market. Business customers are responsible for most of the unpaid bills, and AT&T has budgeted an additional $200 million to cover those costs. Unpaid bills are the result of increased corporate bankruptcies, billing system problems and additional competition. Company management is scrutinizing the firm's ability to collect bills and indicates that capability will be vital as more firms enter the market.

Finance, Company sales and earnings, Company Sales/Revenue, Company Earnings/Profit

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How to unclog the Internet

Article Abstract:

The Internet, once seen as a super highway, has become a traffic jam of global proportions. The recent AOL debacle, in which unlimited pricing caused a huge increase in demand for services, left many users unable to access crucial online information. The network overload has begun to affect regular phone service and corporate systems which use the same networks. Over 4,000 ISPs offer access services, often at flat-rate pricing, which is often not profitable, especially as users spend increasing amounts of time on line. New pricing schemes are clearly necessary to alleviate this crisis. Usage-sensitive pricing, which would require heavy users to pay for additional time, and priority pricing, which would allow users to buy faster or more reliable services, are sensible solutions to the communications crisis. The Internet must be stable and dependable to be profitable.

Internet/Web overview

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