Summary
1. In at least one major city, AT&T appears to be feeling out lost small-business customers. 2. While it seems that the RBOC has not made any commitment to such a plan, it is apparently telemarketing this notion to business subscribers it has lost to Comcast, and perhaps to other MSOs. 3. Even though the carrier’s focus for margins will be on contracts with major enterprises, the loss of small-business lines is evidently causing a large amount of consternation at the company.
Analysis
Small establishments with as many as five business lines are apparently being tested to see the interest level in getting an all-for-one price. Such subscribers are paying as little as a third of the cost on their voice lines in switching to Comcast. After AT&T makes the offer, the subs are told that the carrier will get back to them in several months. Obviously, if there is sufficient interest, the service provider could conceivably pull the trigger on such a program.
It is clear as to why AT&T would keep such activities quiet. Those businesses that are close to having their contract with the RBOC run out may decide to switch to an MSO now. Assuming there was a move to such an aggressive pricing structure, the level of desirability is likely to be based on two criteria. First, the amount of satisfaction regarding service quality with the cable TV firm would be important. Second, the amount of time AT&T wants to lock the subscriber in will be paramount. If AT&T is looking for an agreement that lasts much more than a year, it could still be at a disadvantage against Comcast.
