AT&T; ‘Fixed-Wireless’ System L.A.-Bound

AT&T; Corp. plans to launch its new wireless home phone and broadband Internet service in San Diego next month and in Los Angeles, Houston and Anchorage later this year.

The move, to be announced by the telecommunications giant today, represents the company’s first expansion of its so-called fixed-wireless service since it converted its Dallas-area test system to full commercial operation earlier this year.

AT&T; is counting on the technology to give it access to residences without having to use copper-wire connections owned by local phone companies such as Pacific Bell. The technology uses a cellular-like network to deliver high-speed Internet access for up to five computers and up to four phone lines directly to homes through standard inside wiring, a VCR-sized box and a small antenna attached to the house.

For more than a year, the service has been available in the Dallas-Fort Worth area, where more than 2,000 customers have subscribed to the service, according to AT&T; Wireless, the unit in charge of the project. In that market, AT&T; sells a package of services that cost about $64 per month for two phone lines, Internet service through AT&T; WorldNet, and connections to the Internet at speeds of up to 512 kilobits per second--about 12 times faster than a typical dial-up modem.

AT&T; said it will not offer the service where it owns the cable franchise, such as in West Los Angeles, where Media One operates. In addition, it will not offer the service in San Diego neighborhoods served by Time Warner cable, with which it hopes to jointly offer such services.

AT&T; Wireless has not yet unveiled pricing for the new markets, but the company promises to offer the first phone line and three features for roughly the same price as the incumbent local phone company, then offer a 50% discount on the second line. The Internet access and service will be priced competitively, the company said.

In August, AT&T; Wireless will begin selling the new service in select areas in San Diego that are covered by “a few dozen” radio towers already installed, according to Michael Keith, president and chief executive of AT&T; Wireless. The company plans to gradually add more wireless coverage until it has about 131 antennas covering the region.

AT&T; recently purchased a mobile phone network in San Diego that has been run by GTE Wireless. However, AT&T; said it will use different radio frequencies--and a different network--to provide the fixed-wireless service.

In Los Angeles, where AT&T; has long had a mobile phone presence (through L.A. Cellular and now its own branded service), the company also plans to use a separate network from its mobile business.

However, the roll-out in the Los Angeles region could go faster than in San Diego because AT&T; can mount new antennas alongside its mobile sites.