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AT&T's CallVantage Service Expands to Serve the Western United States

Posted on: Monday, 17 May 2004, 06:00 CDT

BEDMINSTER, N.J., May 17 /PRNewswire/ -- AT&T today announced the availability of its residential Voice over Internet Protocol (VoIP) phone service, called AT&T CallVantage(SM) Service, providing residents throughout the Western United States a high-tech alternative for their personal communications needs.

AT&T CallVantage Service began setting benchmarks six weeks ago for what the company believes will be the industry's most reliable and innovative broadband phone service in the country. To date, it has made the service generally available to consumers in California, Massachusetts, New Jersey, New York and Texas.

Now the company is expanding its service footprint in Phoenix; Boulder- Longmont, Denver and Fort Collins-Loveland, Colorado; Portland-Vancouver and Salem, Oregon; Bellingham, Bremerton, Olympia, Seattle and Tacoma, Washington; as well as the Sacramento, Santa Cruz-Watsonville, Santa Rosa, Vallejo- Fairfield-Napa and Ventura areas of California.

"AT&T already provides traditional residential local service to more than 4 million households nationwide, but AT&T CallVantage Service marks the beginning of an exciting new era in voice communications that gives customers another competitive choice," said Cathy Martine, AT&T senior vice president for Internet Telephony, Consumer Marketing and Sales.

"AT&T continues to lead the adoption of VoIP services by both businesses and consumers as it delivers the next generation of communications that our customers demand," said Martine.

AT&T CallVantage Service requires a customer to have a high-speed Internet connection to the home. While a growing number of households have access to these broadband connections through their local cable or telephone company, only about one in five subscribe nationally. According to data from TNS Telecoms, broadband penetration in Arizona is about the same; a little lower in Colorado at 17.2 percent; at 18.2 percent in Oregon; and runs higher in Washington at 21.6 percent.

VoIP applications might just be the "value-add" that consumers are seeking to justify their investment in broadband, Martine said.

AT&T CallVantage Service is different than traditional phone services because through the use of IP-based networks it can offer customers typical features such as call waiting, three-way calling, and call forwarding, and far more advanced ones as well. Indeed, consumers will get unprecedented convenience and control with innovative features including:

* "Call Logs," which tracks incoming and outgoing calling with "click to

dial" capability;

* "Do Not Disturb," which allows customers to receive calls only when

they want, while letting emergency calls ring in;

* "Personal Conferencing," which enables users to set up a meeting with

up to nine additional callers;

* "Locate Me," which enables home phones to find customers by ringing up

to five phones all at once or one right after the other;

* "Voicemail with eFeatures," which allows customers to hear their

messages from any phone or PC and forward the voicemail to anyone on

the Web via e-mail.

All that is required for service is an easy-to-connect, plug-in telephone adapter (TA) provided by AT&T, a broadband Internet connection and regular telephone supplied by the customer. It is simple to use and easy for consumers to install -- typically in 10 minutes.

AT&T CallVantage Service works with most cable modem or digital subscriber line (DSL) broadband connections. The TA is compatible with most home computer networks and may be used in conjunction with various home network routers. And, the adapter can be used from almost any location where there is a telephone and a broadband connection. That gives customers the ability to stay connected by taking this service with them when they travel.

To kick-start the AT&T CallVantage Service launch, AT&T will be extending its special introductory rate of $19.99 a month for the first six months to those who subscribe by June 30, 2004. This promotional rate includes a complete calling solution that provides unlimited local and long-distance domestic calling, including calls to Puerto Rico and the U.S. Virgin Islands, discount rates for international calling, and a suite of advanced features that customers have never experienced before. AT&T CallVantage will cost $39.99 a month thereafter. The company plans to add many more advanced features over the next 12 months.

As a special incentive, the company will offer AT&T CallVantage customers one month of free service (maximum of 12 months) for each referral and sale made through its "Refer-a-Friend" program.

The company's commitment is to expand AT&T CallVantage Service to 100 major markets by year's end as part of AT&T's growing strategic focus on IP-based communications services. Today's 34th market entry marks attainment of one-third of that ambitious goal. The company expects to sign up 1 million business and consumer users by year-end 2005.

"Imagine extending this set of features to your entire family and the connectedness that functionality will provide. With an IP-based service, imagination combined with software opens up enormous possibilities," Martine added.

AT&T CallVantage Service is an innovative service that promises to transform the way people communicate. A core concept to the service, built on AT&T Labs patented technology, is the ability to quickly introduce new features and capabilities to the platform.

New technologies like VoIP are exciting but in no way substitute for important pro-competitive local phone policies. The availability of fair, cost-based wholesale rates and the Unbundled Network Elements Platform (UNE-P) have provided millions of residential and small business customers the freedom to select a competitive local phone service provider and enjoy the benefits of lower rates and new, innovative services.

On April 29, AT&T proposed a groundbreaking offer to each of the four Bell companies -- Verizon, SBC, BellSouth and Qwest -- that would enable even more consumers to enjoy the benefits of competition. The proposal is designed to move from the current UNE-P model to facilities-based competition using standalone unbundled loops-the actual wires from the customer's premises to the Bell company central office. This would allow AT&T to expand the use of its own facilities to serve local customers.

Frustrated by a lack of progress in reaching these commercial agreements, last Friday, AT&T asked the four Bell companies to agree to a binding arbitration process that would result in long-term commercial agreements to preserve competition and allow AT&T to transition to its own facilities.

"If the proposals are accepted, the benefits of competition would reach even more consumers and small business owners throughout the western region and across the country," said Tom Pelto, AT&T vice president of law and government affairs.

"The ability to obtain operational and economic access to these 'last mile' loop facilities on terms that are reasonable and fair would ensure that consumers have a meaningful choice in local service providers and the most economical prices for telephone services," said Pelto. "We believe our proposals are in the best interest of consumers and would continue to provide an essential bridge for investment and innovation."

With the addition of AT&T CallVantage Service, AT&T offers consumers a broad range of communications services designed to meet almost any need and budget. AT&T's portfolio of offers includes everything from new and innovative services like broadband telephony to traditional bundled packages of classic local, long distance and Internet services.

The company plans to support the marketing of AT&T CallVantage Service with an extensive communications campaign that will include mass market advertising on television, radio and in print and through direct mail, and online.

To learn more about AT&T CallVantage Service, consumers can visit http://www.att.com/CallVantage or call 1-866-816-3815 extension 70339.

About AT&T

For more than 125 years, AT&T has been known for unparalleled quality and reliability in communications. Backed by the research and development capabilities of AT&T Labs, the company is a global leader in local, long distance, Internet and transaction-based voice and data services.

The foregoing contains "forward-looking statements" which are based on management's beliefs as well as on a number of assumptions concerning future events made by and information currently available to management. Readers are cautioned not to put undue reliance on such forward-looking statements, which are not a guarantee of performance and are subject to a number of uncertainties and other factors, many of which are outside AT&T's control, that could cause actual results to differ materially from such statements. For a more detailed description of the factors that could cause such a difference, please see AT&T's filings with the Securities and Exchange Commission. AT&T disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. This information is presented solely to provide additional information to further understand the results of AT&T.

(Logo: http://www.newscom.com/cgi-bin/prnh/19991018/ATT )

Photo: http://www.newscom.com/cgi-bin/prnh/19991018/ATT

AT&T

CONTACT: Russell Glover, +1-303-298-6513, russelleglover@att.com, GaryMorgenstern, +1-908-234-6416, gmorgenstern@att.com, both of AT&T

Web site: http://www.att.com/http://www.att.com/CallVantage

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