AT&T takes first steps toward launching local telephone service for business customers.

BASKING RIDGE, N.J.--(BUSINESS WIRE)--Jan. 27, 1997--AT&T today introduced two services as the company's initial steps in delivering local telephone service to business customers across the United States.

AT&T's Business Local Service is a full-featured local service for small and medium-sized businesses. It will be available in California beginning February 3 and is scheduled to be rolled out in other states throughout the year.

AT&T Digital Link, a capability resident within AT&T's Worldwide Intelligent Network, is an outbound service for medium-sized and large business customers that allows them to place calls to local destinations over their existing dedicated digital access links. It is available in 35 states today, growing to 45 in February.

"This represents two exciting steps toward delivering on our promise to provide full, competitive local service," said Jeff Weitzen, AT&T executive vice president for business markets. "Regulatory hurdles and other roadblocks still stand in the way of full and unfettered local competition. But we're on our way."

AT&T'S BUSINESS LOCAL SERVICE Available next week for small and medium-sized businesses in the Golden State

AT&T will begin offering local telephone service for business line customers throughout Pacific Bell territory on February 3, making California the first state where AT&T provides Business Local Service.

The service is targeted at companies that typically spend up to $2,500 a month on telecommunications services.

AT&T will file necessary documents with the California Public Utilities Commission today, and the service is scheduled to be available in five business days. AT&T will roll out Business Local Service in other states as swiftly as possible.

"We're offering simplified and competitive pricing, 'one call does it all' customer care, and a single bill that can include local and long distance charges, as well as other AT&T services - like wireless and Internet access," Weitzen said.

Businesses switching to AT&T local service can keep their current phone number, and AT&T stands behind its local service by guaranteeing reliability and billing satisfaction.

AT&T has been successfully trialing the service with several thousand lines across the state since November. AT&T's reputation for quality and customer service was a major reason that Golden State Instruments asked to be part of the trial. "The minute we could switch over to AT&T local service, we did," said Gilbert Yuen, a partner in the San Leandro-based manufacturer of security products. "We like having a single point of contact for all our telecommunications needs. And we know that if there's ever a problem with any aspect of our service, AT&T will take care of it."

AT&T's service offers call forwarding, speed dialing, caller ID and other advanced features typically associated with local service. It's provisioned through Pacific Bell's facilities. AT&T will extend the offer into additional areas of California as negotiations are concluded with other local telephone companies and competitive access providers.

Businesses subscribing to AT&T's local service will pay $10.32 a month per line plus less than 2 cents a minute for local calls, regardless of time of day or calling zone, making the offer simpler to understand than current Pacific Bell pricing. Pacific Bell's line charges vary by locale throughout that state. In addition, Pacific Bell charges different rates for initial and additional minutes, by time of day and by local calling zone - with the highest rates during weekday business hours.

While this represents a step in opening the California telephone monopoly to competition, Weitzen noted that a number of roadblocks must be overcome for Californians to enjoy the full benefits of local telephone competition.

"For true and fair competition to exist, the California PUC must take further steps, including setting fair prices for services we acquire from Pacific Bell, requiring Pacific Bell to provide adequate electronic interfaces for various processes and establishing performance standards to ensure Pacific Bell meets its obligations," he said.

Companies in California wanting to sign up for AT&T's Business Local Service may call 1-800-ATT-4ALL.

AT&T DIGITAL LINK Already up and running for businesses in 35 states

AT&T Digital Link lets medium and large business customers use their existing dedicated digital access to AT&T's network to place outbound calls to local destinations.

"Typically these customers are already utilizing their dedicated trunks for multiple services -- including faxes, data transmission and Internet access -- so we're helping them make more efficient use of existing facilities," said Weitzen.

Though local, these outbound calls are billed and discounted as part of a customer's long-distance contract, helping to meet volume commitments and earn further discounts. In addition, each call is covered by the same reliability guarantees and sophisticated network management features that apply to AT&T's top business services.

With AT&T Digital Link, businesses can send outbound local and long-distance calls over their existing dedicated connection to AT&T's network, gaining the advantage of end-to-end digital bandwidth and clarity. Dedicated access is widely used by businesses owning Private Branch Exchanges (PBXs), who are typically subscribers to AT&T's UniPlan (sm), OneNet (sm), Software Defined Network or Virtual Telecommunications Network Services. These customers represent more than half of AT&T's business revenue.

AT&T Digital Link is easy to implement, usually requiring only minor software changes to a customer's PBX. There is no need to change phone numbers, make a new contract or commit to new volumes. In addition, businesses can use the same customer service number for help with both long distance and outbound local calling services.

AT&T Digital Link's simplified pricing schedule charges for outbound local calls in six-second increments. Most local phone companies bill in one-minute increments.

In its initial phase, the service does not route certain incoming calls or handle outbound calls to toll-free, 900 service or directory assistance numbers. AT&T will begin adding these features and enhancements by mid-summer. Additionally, regulatory requirements need to be met in each state.

"Customers clearly see value in a local option to place outgoing calls," said Weitzen. "They are so eager to have simplified, high-quality local calling as part of a bundle from AT&T that they pushed us to give them whatever we could. Now we're pushing ourselves to give them the rest."

Thousands of customers have signed up for AT&T Digital Link trials that began in October. Telxon Corp., headquartered in Akron, Ohio, was one of the first to implement the service. Telxon is a leading designer and manufacturer of wireless and mobile transaction solution systems for vertical markets.

"AT&T Digital Link allows us to exercise greater choice in local calling and leverage the intelligence of AT&T's network for greater efficiency," said Robert Nebiker, Telxon's network services director, who managed the trial.

"It interfaces with our existing network reporting structure, meaning I now have more data available on our local calling. Plus, we get the benefit of working with AT&T's technical experts and customer service," Nebiker said.

Businesses wanting more information about AT&T Digital Link should contact their AT&T account team.

Gilbert Yuen, partner, Golden State Instruments, San Leandro, Calif. - 510-352-7860 Robert Nebiker, network services director, Telxon Corp., Akron, Ohio - 330-664-5000

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