AT&T Aiming To Fix Wireless Network Problems
NEW YORK (Reuters) - AT&T Corp. (NYSE:T - news) said Thursday it is working to fix service problems and capacity constraints in its wireless phone business.
The popularity of the company's Digital One Rate pricing plan and a surge in subscribers has put the company's wireless phone network under strain, Mike Keith, head of AT&T's $26 billion business services unit, said at the Merrill Lynch Telecommunications CEO Conference in New York.
''Wireless revenues are running above expectations,'' Keith said.
The company is working quickly to add more network capacity in markets such as New York City, suburban Chicago and Washington D.C. ''Capacity is constrained...we're working on this aggressively,'' Keith said.
The company is adding extra wireless network equipment from Lucent Technologies Inc. (NYSE:LU - news) to fill out its network in these overburdened markets.
Keith said fixing the capacity problems is a priority for the company.
''The teams have to sit down next week with Mike Armstrong (AT&T's chairman) to explain how we're fixing this problem,'' he said.
Separately, Keith said AT&T does not expect to buy any additional local phone assets.
AT&T last year acquired Teleport Communications Group, which provides local phone services to businesses, for about $12 billion.
Using the Teleport assets, AT&T will be able to expand on its own into new local phone markets. Keith said it would be less expensive for AT&T to build its own networks rather than buying competitive local exchange carriers, or CLECs.
''I think given the prices of CLECs and our ability to increase scale, it is easier for us to build ourselves,'' Keith said.
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