The "Bell companies" are the former Regional Bell Operating Companies (RBOCs) -- BellSouth, Qwest, SBC, and Verizon.
AT&T said it is reassessing "its ability to serve residential consumers in the other 39 states in which it provides local and long-distance service." The firm said as it continues its examination of the 39 states, it will make additional announcements later.
AT&T indicated that the loss of "an effective local bundle" impacts its ability to offer a competitive bundle of services, particularly a package of local and long distance calling. "Without an effective local product in its service bundle," the company said, "AT&T foresees that it will not be able to effectively provide customers with a complete package of telecommunications services."
The Telecommunications Act of 1996 called for increased telephony competition. Some 20 million subscribers have been receiving service from non-Bell providers. Implicit in the Act was a deal in which the Bells would be able to offer long distance service and the long distance providers -- chiefly AT&T and MCI -- would be able to offer local telephone service. MCI has also indicated it is likewise considering withdrawing from competing in consumer markets.
AT&T emphasized that it will not abandon its existing residential customers in the seven states and that its enterprise, business and VoIP services are not affected by Wednesday's announcement.
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