AT&T Exits $63 Billion Dollar Consumer Market – Will There Be More?
FRAMINGHAM, MA – AUGUST 2, 2004 – AT&T provides local and long distance phone service to 35 million U.S. households, ranking it as the nation's largest long distance company and the single largest competitor to the 4 RBOCs in their core local consumer markets. On July 22, however, AT&T announced its decision to stop competing for consumer local and standalone long distance business.
"AT&T's decision to exit the legacy consumer market is not a non-event," said Mark Winther, group vice president of Worldwide Telecommunications at IDC. "We expect similar decisions from other large CLECs to follow."
The results of the FCC's triennial review and its ultimate rejection by the U.S. Court of Appeals has triggered a series of events that have ultimately led to AT&T's decision to begin the process of withdrawing from the mass market.
Even without the burden of competing in the consumer market, AT&T faces a challenging market in which competitors are willing to price their services at levels that allow for little or no profit in order to gain share. Although AT&T has stated that it will continue to accept new subscribers while caring for its current customers, the process of maintaining what is essentially a dying business will be an unpleasant process.
IDC's new study, Will the Last Person Please Turn Off the Lights: AT&T Exits Consumer. Will There be More? (IDC #31670), discusses the impact of AT&T's decision to focus attention on the enterprise market by withdrawing all marketing and advertising for its legacy consumer products. AT&T will continue to service existing consumer customers and will have a presence in the residential market with its CallVantage VOIP products. However, the implications from both a competitive and historical standpoint loom large.
To purchase this document, call IDC's sales hotline at 508-988-7988 or email email@example.com.
IDC is the premier global market intelligence and advisory firm in the information technology and telecommunications industries. We analyze and predict technology trends so that our clients can make strategic, fact-based decisions on IT purchases and business strategy. Over 700 IDC analysts in 50 countries provide local expertise and insights on technology markets. Business executives and IT managers have relied for 40 years on our advice to make decisions that contribute to the success of their organizations.
IDC is a subsidiary of IDG, the world’s leading technology media, research, and events company. Additional information can be found at www.idc.com.
# # #