Is this agreement good news for AOL?
How will it affect AOL going forward?
Comments please.
TIA
vinnie
cbs.marketwatch.com
Tel-Sav.com in pact with AT&T
By Cecily Fraser, CBS MarketWatch
Last Update: 1:23 PM ET Dec 30, 1998
Also: Tech Report
NEW HOPE, Pa. (CBS.MW) -- Tel-Sav.com said Wednesday that it
has signed an agreement with AT&T guaranteeing the telecommunications
provider that it will be an AT&T customer for the next 25 years.
The company (TALK), which is headquartered in
New Hope, Pa., said the pact gives it the ability to
buy an unlimited amount of broadband fiber
capacity over the next 12 months.
Following the news, shares jumped 2 3/16 to 17
3/8.
Tel-Save.com, which has been an AT&T (T)
customer for nearly a decade, said the arrangement
will "significantly reduce" costs in providing services
over its own nationwide network.
"I believe that this agreement is one of the first of its
kind and am proud that AT&T wanted to do it with
Tel-Save.com," said the company's outgoing chief
executive, Dan Borislow, in a release.
"With this pricing in place and the benefit of our low
internal costs, I feel that Tel-Save.com will enjoy
the lowest network cost structure in the industry,"
Borislow added.
Shares of AT&T were down 1 1/8 to 77 7/8 in midafternoon trading.
Tel-Save.com provides e-commerce telecommunications through an
arrangement with America Online (AOL) and provides services over its
own telecommunications network, One Better Network. |
