AT&T Hangs Up

Says It Will Pull Out of 7 States

June 23, 2004
AT&T says it is dropping attempts to sell traditional residential service in seven states. It blames the decision on a court decision that frees the Bell companies from being required to subsidize competitors.

AT&T says it will stop selling service in Arkansas, Louisiana, Missouri, New Hampshire, Ohio, Tennessee and Washington, though it says it will continue to serve existing customers. MCI is reported to be planning to exit the consumer telephone business altogether.

Nationwide, rivals to the long-time Bell telephone companies have signed up about 20 million customers, using government-mandated discounts on the copper wires owned by the Bell companies. The Supreme Court a few weeks ago ruled the practice was illegal.

The court's action leaves the Bell companies free to increase the rates they charge competitors who use their property.

AT&T, MCI and the other would-be local competitors blame their current problems on the "regulatory framework." But no regulatory agency or law stops the companies from building their own network to compete with those owned by the Bell companies.

Consumers left in the lurch by the fleeing long-distance companies aren't totally without choice. Cable companies are beginning to offer local and long-distance service and many consumers are finding they can make do with just a cell phone.

Even AT&T admits there are options. It is preparing a major push for its new Internet-based phone service. That service comes into homes over broadband cable or DSL lines; users connect to AT&T via the Internet.

AT&T says it has 4.3 million residential customers nationwide and 30 million long-distance customers.

Back to the top |

Terms of Use Your use of this site constitutes acceptance of the Terms of Use

Advertisements on this site are placed and controlled by outside advertising networks. ConsumerAffairs.com does not evaluate or endorse the products and services advertised. See the FAQ for more information.

Company Response Welcome If complaints about your company appear on our site, we welcome your response. Please see the Response Form for more information.

For more information, see the FAQ and privacy policy. The information on this Web site is general in nature and is not intended as a substitute for competent legal advice.  ConsumerAffairs.com Inc. makes no representation as to the accuracy of the information herein provided and assumes no liability for any damages or loss arising from the use thereof. 

Copyright © 2003-2009 ConsumerAffairs.com Inc.  All Rights Reserved.    The contents of this site may not be republished, reprinted, rewritten or recirculated without written permission.