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From AT&T MAY 21, 2001


AT&T Rolls Out Next-Generation Payphones, Combining Public Telephony With Internet Access

 NEW YORK - AT&T today unveiled a new generation of public telephones that combine simultaneous high-speed connectivity to the Internet and other online services, such as e-mail, with voice calling.  The new AT&T Public Phone 2000iTM is being rolled out initially in major U.S. airports for use by travelers.

The fee to use all of the capabilities is 25 cents per minute, with a four-minute minimum. The unit accepts credit cards or cash - $1, $5, $10 and $20 bills - for payment. Additional features include a 12-inch, touch-sensitive screen and a touch pad integrated into the keyboard.

The new terminal represents an evolutionary step from the Public Phone 2000 that AT&T began deploying in 1991, with the “i” in the name indicating an Internet-enabled version of the original device.  Installations at airports in the New York, Atlanta and Dallas areas have already begun, with other major airports to receive installations by the end of the year.

“We were very impressed with the capabilities of the AT&T Public Phone 2000i, having sampled a number of different enhanced public communication terminals,” says Marion Resnick, senior telecommunications analyst for the Port Authority of New York & New Jersey, which operates both JFK and Newark International Airports.

“We’re very pleased to be among first in the world to deploy these state-of-the-art units, first at JFK as part of our major renovation of that airport, and later this year at Newark as well,” she said.

The nascent market for the capabilities of the new public telephones is expected to experience steep growth over the next several years.  Some industry experts forecast that the market for public Internet access terminals and limited-functionality Web payphones will grow to more than $1 billion worldwide by 2005.

"The Public Phone 2000i is the most enhanced public communications terminal in the world, representing the future of what we today call the payphone," says John Hyland, vice president of National Public Markets in AT&T Business.

“We’re installing them to take advantage of extremely valuable payphone real estate we already occupy in airports, resorts, conference centers and travel plazas.  This combination of unique services and convenient locations is a natural for helping the traveling public maintain access to home, office and information services that have become such an important part of their lives.”

Installation of about 25 phones already is complete at JFK, Atlanta-Hartsfield and Dallas-Fort Worth International Airports.  Additional installations are scheduled for the remainder of 2001 in Phoenix, Miami, Fort Lauderdale, Fla., and Newark, N.J.  The PP2000i unit was jointly developed by AT&T, NCR Corporation and NetNearU.

The launch of the PP2000i complements the deployment of other next-generation payphones and kiosks at travel-related locations, such as airports and travel plazas.  AT&T currently is installing over 600 next-generation payphones from Elcotel at JFK and La Guardia airports in New York, which allow users to place traditional phone calls, in addition to providing access to Web-based information and a data port.  AT&T also is conducting a service trial with a unit called the PowerPhone, as well as a kiosk from NetNote that provides Web access but no phoning capabilities.

AT&T said a major source of revenue from the Public Phone 2000i – in addition to the Internet access and telephony capabilities – would be sales of advertising space on the full-motion video screens of the units.  AT&T says it has found such advertising to be more targeted than Internet banner ads, and is particularly effective in reaching business travelers.

Illustrating how effective such ads can be, a group of 50 enhanced public phones that sported an ad for 1-800-FLOWERS.COM* in one U.S. airport saw over 500 calls go to the company, a leading provider of floral and gift products, during a recent month.  Meanwhile, 1,000 standard payphones in the same airport generated fewer than 50 calls over the same period.

 Banner ads on the unit’s video screens can be programmed to change as the advertiser wishes, including by time of day, vertical market and any holiday season.  When an ad is touched or clicked, a connection is made to the advertiser’s Web site at no charge to the user.  During a typical phone or Internet/e-mail user session, the Public Phone 2000i has a captive audience for anywhere from 5 to 15 minutes.  There is also advertising impression value among the millions of people who would simply walk by enhanced public telephones over the course of a year.

More information about AT&T’s public Internet access terminals – including information about advertising on the units – is available at http://www.att.com/public.

* A registered trademark of 1-800-FLOWERS.COM.

About AT&T: 

AT&T (www.att.com) is among the world’s premier voice, video and data communications companies, serving consumers, businesses and government.  AT&T has annual revenues of nearly $66 billion and 162,000 employees, and 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, is the largest cable operator in the U.S., and has one of the largest digital wireless networks 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.  Concert, the AT&T/BT Global Venture, serves the communications needs of multinational companies and international carriers worldwide.  

In October 2000, AT&T announced a restructuring plan to create a family of four businesses, each operating under the “AT&T” brand, committed to uniform standards of quality.  Under the plan, which is expected to be completed in 2002, each of these four businesses will become publicly held, trading as either a common stock or tracking stock.

The foregoing are "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.

For more information, reporters may contact:

Michael Gaibor - AT&T
908-658-6449 (office)
mgaibor@att.com

Paul La Plante - AT&T
908-658-7928 (office)
plaplante@att.com


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