SBC to Begin Internet Phone Service in 2005

SBC Communications Inc., the second-largest U.S. local-phone carrier, will begin residential Internet-based phone service in January to deter customers from switching to cable and wireless phone competitors.

The service, which uses high-speed Internet connections, is being tested by 1,000 customers in Los Angeles, Dallas, Chicago and San Antonio, Chief Executive Edward Whitacre said. It will be offered in all 13 U.S. states served by SBC, he said.

SBC didn’t disclose how much it would charge.

Shares of SBC fell 25 cents to $26.13 on the New York Stock Exchange.