AT and T eagerly plots a strategy to gobble local phone business; new switches, cellular service and potent brand name are all part of the plan; but bells intend to bite back

Article Abstract:

AT and T, bolstered by new legislation passed by the Senate and House of Representatives, intends to aggressively enter the local phone service market. AT and T will use new switches to route local calls, wireless service and its brand name in an effort to reenter the market it was forced out of in 1984. However, the legislation also gives the Baby Bells and cable companies access to the long distance market. In the event the legislation becomes law, AT and T and the Baby Bells are expected to gain profits from the new markets they exploit but will hemorrhage profits in their respective core businesses. AT and T may be hamstrung by an inability to borrow money and is experiencing problems accessing existing local phone lines and equipment. The company will attempt to vault the access problems by relying on their extensive wireless network that was recently purchased from McCaw Cellular.

Telecommunications, Wired Telecommunications Carriers, Telephone Communication, Local Telephone Service, Planning, Marketing, AT&T Corp., Local telephone services, Company business planning, Company Business And Marketing

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AT&T's secret multimedia trials offer clues to capturing interactive audiences

Article Abstract:

A secret 2-year market research project by AT and T concludes that consumers will only use interactive multimedia services that are simple to use and are entertaining. The research project may be the most comprehensive scientific test yet of interactive multimedia, which has been wildly ballyhooed. The test involved 140 people in the homes of 50 AT and T employees in the Chicago area. The employees and their families interacted with various services on their TV sets via a remote control. The favorites were not information programs but games. The most popular programs combined entertainment, communication, information and transactions. Electronic mail and multiplayer games brought strangers and families together. AT and T is investing heavily in developing the technology for interactive multimedia; however, devising content that holds viewers' attention may be the biggest challenge.

Electronic computers, Research, Market research, American Telephone and Telegraph Co., Interactive television, User Behavior, Interactive Cable, Marketing Research

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