Some AT&T; Wireless Users Lose Discount

AT&T; Corp. is telling some customers in the San Francisco Bay Area and regions where it doesn’t have a wireless network that they no longer are eligible for a popular discount calling plan as it seeks to control costs.

Customers who use their wireless phones a lot in areas of the U.S. where AT&T; has to pay competitors for “roaming” service are being dropped from the company’s Digital One Rate program, which provides a block of minutes for one monthly fee.

Since joining AT&T; two years ago, Chief Executive C. Michael Armstrong has slashed billions of dollars in costs to boost profit and focused on fast-growing businesses, including wireless. The largest U.S. long-distance and wireless phone company may be able to boost profit even more at its wireless unit by switching some customers to alternative calling plans.

“Roaming continues to be the issue in managing the profitability of Digital One Rate,” said Daniel Zito, an analyst at Legg Mason Wood Walker Inc.

AT&T; has about 12 million wireless customers, about 1.6 million of whom choose one of several Digital One Rate plans.

The plans are offered in regions where AT&T; has wireless facilities. Wireless customers in Houston and Kansas City also are being asked to change to different plans from the Digital One Rate program. Switching to competitors such as Sprint Corp. often involves purchasing a new phone, which could cost $100 or more.

Shares of New York-based AT&T; fell $1.31 to $50.75 Tuesday on the New York Stock Exchange. The stock is little changed this year.