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AT&T Bites the Hands that Feed It Again!

  • No Jitter (www.nojitter.com)
  • 5/30/2012
  • Hank Levine

Some of you may have read that on a recent call discussing its latest financials AT&T’s CFO proudly reported  that business service revenues experienced their “best growth rate in 4 years, down only 0.3% compared to a decline of 4.4% in the year-ago quarter. And total business revenues were down less than 1%.” Despite the continued shrinkage in revenues, “wireline business margins improve[d] year-over-year for the fifth consecutive quarter.”

Breathtaking spin aside, part of the story behind these results is that business customers are fleeing AT&T  when they can because of escalating prices (implemented through hidden/uncontrolled surcharges, and  designed to preserve margin even as customers depart) and the ever-more unfriendly contract terms that AT&T is demanding so that it can act with impunity even as customers are blocked from using the most cost-effective technologies.

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