AT&T aiming to fix wireless network problems
NEW YORK, March 18 (Reuters) - AT&T Corp. 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. 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.
((New York Newsdesk (212) 859-1700)) |
