AT&T; Wastes No Time Unveiling Plan to Enter Local Phone Market

Just hours after a major telecommunications reform bill became law Thursday, AT&T; Corp. Chairman Robert E. Allen described plans to expand into the $90-billion local telephone market as early as this summer.

“We think we can win at least one-third of that market in the next five to 10 years,” Allen told a news conference.

His comments came after President Clinton signed major reforms to the 1934 Communications Act.

AT&T; spokesman Jim McGann said the company has already received authorization to provide local telephone service in California, Illinois, Michigan, New York, Tennessee, Maryland and Wisconsin. In addition, it is seeking permission to enter the local markets of Connecticut, Georgia and New Jersey, he said.

Allen said AT&T;, the nation’s largest long-distance company, intends to enter the local telephone market through several avenues, including cable television systems, fiber-optic data systems to businesses and AT&T;’s existing long-distance lines to its business customers.