AT&T; Stands to Lose Dominance in 800 Number Business

In a finding that could clip American Telephone & Telegraph Co.’s dominance in the toll-free 800 number business, an independent survey has found 46% of large corporations might switch 800 carriers.

The companies “are actively considering switching carriers when portability becomes a reality,” according to Strategic TeleMedia’s poll of telecommunications managers at Fortune 1000 companies.

The Federal Communications Commission has ruled that after May 1, companies can switch 800 carriers without changing numbers.

Before the new rule, if a buyer of 800 service switched carriers, it had to change its 800 number.

The FCC said the earlier policy discouraged competition because for many companies, such as hotels and airlines, the 800 number is well known to customers and part of its identity.

Currently, AT&T; controls about 70% of the 800-number market, a $7.5-billion industry.

But both MCI Communications Corp. and Sprint Corp. see the FCC decision as a big opportunity to win new corporate customers. Both companies have introduced new services.