AT&T; Offers Cheap Net Access

AT&T; Corp., the largest U.S. long-distance phone company, is starting a low-cost Internet service for $4.95 a month to compete with free online-access companies such as NetZero Inc. AT&T; said it can afford to charge about $15 less a month than it does for its standard WorldNet Internet plan because the new service will be subsidized by advertising. Companies such as Westlake Village-based NetZero also require that customers view ads on their computers in exchange for access. People who sign up for the plan will get 150 hours of online access a month, six electronic-mail names, computer space to start a personal Web page, instant messaging and other e-mail services. Shares of New York-based AT&T; fell $1.13 to close at $33 on the New York Stock Exchange.