AT&T; BREAKUP II : Q&A; : Impossible to Predict Effect on Phone Rates
Some questions and answers on the AT&T; breakup:
*
Q So AT&T; is breaking up into smaller companies again. Will this restructuring affect my long-distance service in any way?
*
A Not right away. The restructuring won’t be completed until next year. And if it makes AT&T; more efficient, as intended, new services could arise and get to customers more quickly. For now, it’s impossible to predict the impact on customers’ long-distance rates.
*
Q How does the corporate change affect my AT&T; phone and other telecommunications equipment I own made by AT&T;?
*
A Warranties and service agreements on all of AT&T;’s consumer products--from phones to answering machines--will be honored by an as-yet-unnamed company that will be spun off from AT&T; under the new corporate plan.
*
Q Will I still be able to buy phone products at AT&T; retail stores?
*
A It’s not clear whether AT&T;’s retail stores will remain open.
*
Q Will the restructuring make it easier for me to buy services--like long-distance or cellular--from AT&T;?
*
A That’s one of the company’s goals. One possibility is providing “one-stop shopping” so customers won’t have to talk to several different people when they want to buy a range of products.
*
Q Will the restructuring change my cellular service in any way?
*
A Not immediately. As with long-distance service, a more efficient company may end up producing more innovative cellular services and get them to market quicker. It is impossible to predict the impact on customers’ cellular rates or the rates for the next generation of cellular service, called personal communications services.
*
Q Will my AT&T; personal computer and related devices be orphaned?
*
A No. Although AT&T; is spinning off its computer manufacturing division to shareholders, the spun-off company is expected to honor service agreements and warranties.
*
Q Suppose I’m not an AT&T; customer. How does this affect me?
*
A AT&T; is the nation’s most widely held stock. Even if you haven’t directly purchased a share, your pension plan or mutual fund could very well be an owner. For each share in AT&T; now held, the restructuring would give holders a stake in each of the three newly created companies and possibly an increased value for their investment.
