AT&T adding surcharges; FCC furious

Article Abstract:

AT&T, US biggest long-distance carrier, will introduce a new 5% surcharge for interstate and international calls starting July 1998. The surcharge for in-state long-distance will be 1.8%. MCI will also unveil a new, unspecified, fee for clients, while Sprint has yet to announce its move. AT&T and MCI said the surcharges are needed to offset rising contributions to the government universal service fund, which provides Internet access for schools and libraries, and helps keep phone service more affordable. FCC Chairman William Kennard hits AT&T's move, calling it unwarranted, premature and inconsistent with the firm's public proposals.

Comment:

Will introduce a new 5% surcharge for interstate and international calls starting 7/98

AT&T Corp.

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Sprint dials up nontraditional calling plan

Article Abstract:

Sprint has unveiled a calling plan that offers customers unlimited long-distance service on weekends for a monthly fee of $25. Under the new plan, which is dubbed as Sprint Unlimited, customers are still expected to pay 10 cents per minute when making long distance calls during weekdays. Sprint noted customers who make a minimum of four hours of long distance calls during weekends will see significant savings from Sprint Unlimited, which will be offered beginning Nov. 5, 1998. The introduction of the Sprint Unlimited will be backed by an advertising campaign, which carries the tagline, "Sprint Ahead."

Comment:

Unveils calling plan that offers customers unlimited long-distance service on weekends for a monthly fee of $25

Marketing procedures, Telephone Communications, Telephone services, Sprint Corp.

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AT&T makes bold, $3B stock repurchase

Article Abstract:

AT&T has made public that it will buy back $3 billion of its stocks from the public. AT&T CFO Dan Somers stated that the repurchase marks AT&T's confidence in its controversial $32 billion acquisition of cable TV operator TCI and that the buyback will help handle effects of the pending TCI purchase as well as its acquisition of Teleport Communications Group, which already received approval from the Federal Communications Commission. Somers also stated that by repurchasing its shares now, AT&T will increase the supply of currency it has on hand.

Comment:

Will buy back $3 billion of its stocks from the public

Acquisitions & mergers, American Telephone and Telegraph Co.

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