[NYTr] End of an era: AT&T Announcs the death of the pay phone

[All the News That Doesn't Fit]

AT&T via PR Newswire -Dec 3, 2007
http://www.prnewswire.com/cgi-bin/stories.pl?ACCT=109&STORY=/www/story/12-03-2007/0004715282&EDATE=

AT&T Announces Intention to Withdraw from
Pay Phone Business by End of 2008

Growing Availability of Alternative Communications, Especially
Wireless, Has Led to Decline in Demand for Pay Phone Services

    SAN ANTONIO, Dec. 3 /PRNewswire-FirstCall/ -- AT&T Inc. (NYSE: T)
announced today plans to exit the shrinking pay phone business by the
end of 2008. Existing contracts and customer service commitments will
continue to be honored during the period that the business is being
phased out.

    AT&T's Public Communications unit has continued to experience
significant pressure from reduced pay phone usage, primarily as a
result of the growth of alternative communications choices, such as
wireless phones and personal communication devices.

    The company plans to phase out both public pay phones and phones
provided under contracts at government correctional facilities through
the end of next year. All customers will receive advance notification of
specific plans as well as information on other potential providers and
product options.

    The move affects AT&T pay phones in the company's traditional
13-state service area only. BellSouth Corp., which was acquired by AT&T
Inc. in late 2006, had previously exited the pay phone business in its
nine-state service area. AT&T's wholesale pay phone services are not
affected.

    Public Communications will honor all existing customer contract
terms and conditions while continuing to provide excellent customer
service throughout the withdrawal process.

    "This is the right time for us to take this step on behalf of our
customers, employees and stockholders," said David Huntley, senior vice
president for Customer Information Services. "We expect that independent
providers will pick up much of this business, and, as we exit the
business, we will be able to refocus our resources to areas that offer
stronger growth potential and greater opportunity for the company."

    Pay phones in the United States have declined across the industry
from about 2.6 million phones in 1998 to an estimated 1 million phones
today.

    Huntley said the company will be attentive to the needs of both
customers and employees during the 13-month process of phasing out the
business.

    Current AT&T Public Communications customers may call 800-809-0878
with questions.

    Note: This AT&T release and other news announcements are available
as part of an RSS feed at http://www.att.com/rss.

    About AT&T

    AT&T Inc. (NYSE:T) is a premier communications holding company. Its
subsidiaries and affiliates, AT&T operating companies, are the
providers of AT&T services in the United States and around the world.
Among their offerings are the world's most advanced IP-based business
communications services and the nation's leading wireless, high speed
Internet access and voice services. In domestic markets, AT&T is known
for the directory publishing and advertising sales leadership of its
Yellow Pages and YELLOWPAGES.COM organizations, and the AT&T brand is
licensed to innovators in such fields as communications equipment. As
part of its three-screen integration strategy, AT&T is expanding its TV
entertainment offerings. Additional information about AT&T Inc. and the
products and services provided by AT&T subsidiaries and affiliates is
available at http://www.att.com.

(C) 2007 AT&T Intellectual Property.