Advertisement
YOU ARE HERE: LAT HomeCollections

TECHNOLOGY & TELECOMMUNICATIONS | NATION / WORLD

AT&T Seen Losing Call Revenue to Internet

May 08, 1997|(Bloomberg News)

AT&T Corp. is expected to lose $350 million in sales from international phone calls in 2001 because more customers will place calls over the Internet, according to a report. Phillips Tarifica Ltd., a London-based consulting firm, said all U.S. phone companies combined will lose up to $925 million by 2001, with AT&T having the biggest losses. AT&T is the largest U.S. phone company, with about 57% of the $75-billion-a-year long-distance market. Phone companies will lose revenue as more customers use the Internet to place calls. That's because Internet users typically pay a flat monthly fee or pay local phone rates to dial a local number to place their calls. They can then place calls or send e-mail messages anywhere in the world. The number of Internet users in the U.S. will almost quadruple to 44 million in 2001, up from about 12 million today.

Advertisement
Los Angeles Times Articles
|
|
|