AT&T Launches National Prepaid Wireless Offer - Company Business and Marketing

Cambridge Telcom Report, Sept 20, 1999

AT&T is the first major wireless carrier to announce a new National PrePaid Wireless offer that allows consumers to pay in advance for their wireless calling and be able to make those calls across the U.S. with no roaming or long distance charges.

AT&T's National PrePaid Wireless offer, available at select retail locations across the U.S. later this week, combines the ease and convenience of a digital wireless phone with the budget-balancing benefits of a prepaid service.

"Consumers get the best of both worlds with our new National PrePaid Wireless offer," said Dan Hesse, President, AT&T Wireless Services. "They get the freedom and convenience of a digital wireless phone that can be used across the U.S., with the ability to pay as they go for their wireless usage. Consumers can buy the phone and use it right away. The idea is simple: All convenience, no commitment."

AT&T's National PrePaid Wireless offer includes an Ericsson LX700 Digital multi-network phone that works on the largest digital wireless network in North America, operated by AT&T Wireless Services. The phone is ready to use right out of the box, comes preloaded with 15 minutes of calling and can be used across the U.S. to call anywhere in North America and to some 200 countries around the world. Consumers also get a 15-minute refill card, plus a mail-in coupon good for another 60 minutes of airtime included with the phone.

Digital multi-network phones operate with other wireless carriers' TDMA and analog networks and therefore are capable of providing service to customers across North America. The roaming agreements AT&T has negotiated with most wireless carriers allows AT&T to make this national calling program available.

Prepaid wireless enables consumers to pay in advance for wireless calls in much the same manner as standard prepaid cards allow consumers to prepay for long distance calls. With prepaid wireless, consumers enjoy the benefits of having a wireless phone without the typical credit checks, long-term contracts and billing agreements associated with standard wireless offers.

Customers can add additional minutes to their phones by purchasing refill cards at all AT&T Stores and participating retail locations, or by calling an 800 number and using a credit card. Refill cards are available in denominations of 30, 60, 120 and 240 minutes. Consumers follow simple voice prompts to add the new minutes to their phone. The specific per-minute rate a customer pays -- which is good on domestic calls, including long distance and roaming -- depends on the value of refill card they buy or other method they use to purchase the refill minutes. For example, a customer who buys a 240-minute refill card directly from an AT&T Store receives a per-minute rate as low as $0.42/min. on domestic calls.

During the past two years, AT&T has been very aggressive in expanding the retail availability of its popular line of prepaid cards -- more than tripling the number of retail outlets carrying the cards. These existing distribution channels, including convenience stores, supermarkets, college bookstores, gas stations and office supply stores, not only have made AT&T PrePaid Cards easy to find across the U.S., but many will prove invaluable in supporting the launch of the new prepaid wireless offer.

"Many competitive prepaid wireless offers have a confusing array of rates for both local and long distance calls that vary not only by time of day, by the day of week, and many of these offers also can't be used across the nation," said Howard McNally, President, Transaction Services. "Our National PrePaid Wireless product offers simple rates for domestic calls and can be used across the U.S.

"This new offer complements our full line of prepaid services and is perfect for budget- conscious, first-time wireless users, young adults, or consumers who do not want monthly billing," said McNally. "Prepaid cards have enjoyed tremendous growth in the U.S. in recent years and we've worked very hard to make them available to consumers everywhere. The new National PrePaid Wireless offer will be conveniently available at retailers across the U.S. and gives consumers the benefits of a prepaid product with the freedom of wireless."

AT&T's National PrePaid Wireless package will be available beginning Thursday, September 16, at all AT&T Stores nationwide. The product will also be available in the weeks ahead at select major national retailers. To find a retail location near you, call toll free 800-565-4668. Additional information is also available online at http://www.att.com/wireless/. The AT&T National PrePaid Wireless package has a suggested retail price of $129.00.

AT&T Corp. is among the premier voice and data communications companies, serving more than 80 million customers, including consumers, businesses and government. With annual revenues of more than $53 billion and 149,000 employees, AT&T provides services to customers worldwide.

Backed by the research and development capabilities of AT&T Labs, the company runs the world's largest, most sophisticated communications network and has the largest digital wireless network in North America. The company is a leading supplier of data and Internet services for businesses and offers outsourcing, consulting and networking-integration to large businesses. It is also the nation's largest direct Internet access service for consumers.