AT&T; Dials In to Local Market in California

NEW YORK — AT&T; Corp. said Monday that it will launch local calling services for small and medium-sized business customers beginning in California on Feb. 3 and gradually extending to other states.

The move follows that of rival MCI Communications Corp., which has been offering local service to business customers in 25 U.S. cities since the middle of 1996 using its own network facilities.

AT&T; said the service, targeted at companies that spend up to $2,500 a month on telecommunications services, is possible because of a resale deal with Pacific Telesis Group, the regional Bell that serves most of California and Nevada.

AT&T; said it will file details of the service with the California Public Utilities Commission on Monday.

Customers in California will pay $10.32 per month per line and less than 2 cents a minute for local calls whatever the time of day, AT&T; said. It added that Pacific Telesis’ local call offering was more complex.

The service will offer speed dialing, call forwarding, caller ID and other advanced features. Businesses will be able to keep their existing number and will be backed up by AT&T;’s customer service network.

However, business customers who are in GTE Corp.’s California territories will not immediately be able to get the service because AT&T; does not yet have an agreement to resell GTE local circuits.

An AT&T; spokesman was unable to say which states would be next, but industry sources said wherever a resale deal existed, business service would soon be offered by AT&T.;

AT&T; has almost completed a resale deal with Ameritech Corp., which would give it access to local circuits in Midwest states like Illinois, Michigan and Iowa.

Separately, AT&T; said that businesses which have an existing dedicated line to the company--typically for high-speed data services--could now place outbound local calls over this network in 35 states.

AT&T;’s stock fell 25 cents to $38.25 on the New York Stock Exchange in early afternoon trading.