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Technology Stocks : AUTOHOME, Inc -- Ignore unavailable to you. Want to Upgrade?

To: ahhaha who wrote (1307)	2/3/1998 9:17:00 PM
From: Bob Zacks	Respond to of 29970

RSA hired to protect cable. news.com

To: ahhaha who wrote (1307)	2/4/1998 11:48:00 AM
From: ahhaha	Respond to of 29970

By Louis Trager. Interactive Week AT&T Corp.'s entry into Internet Protocol-based long-distance service could prove to be a shrewd boost for Ma Bell, according to analysts. The move was part of an overall plan for the "New AT&T",unveiled last week by Chairman Michael Armstrong and President John Zeglis. In an effort to cut office overhead by billions of dollars,Armstrong announced, as expected, that as many as 18,000 of the companys 128,000 jobs would be eliminated. Most cuts will be induced with golden parachutes. Operationally, AT&T (www.att.com) will use new techniques from its spin-off Lucent Technologies Inc. to multiply the capacity of its 40,000-mile fiberoptic network. Executives indicated they had considered buying local phone access, specifically via the cable industry, beyond an announced $11 billion deal for competitive carrier Teleport Communications Group Inc. And AT&T declared that it will offer Internet Protocol (IP) -based telephony, at prepaid rates as low as 7.5 cents per minute, to its long-distance customers and subscribers to its AT&T WorldNet Internet access service. IP telephony will save AT&T connection fees, paid to the Baby Bells and GTE Corp., that account for 40 percent of an ordinary long-distance call's price. The Federal Communications Commission has exempted Internet services from access fees. Regional carriers "are going to go screaming to the FCC," predicted Executive Vice President Berge Ayvazian, executive vice president of The Yankee Group telecommunications research firm. The $30 billion per year in access charges the Bells collect is their second biggest revenue source after local service. The FCC likely will lift Internet service providers' exemption, said Ayvazian and Infonautics Consulting Inc.'s Peter Bernstein. That would sharply raise providers' business costs, precipitating the long-anticipated shakeout of the vast majority of Internet service firms, according to the analysts.