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February 29, 1996

Source: AP Newswire

"Major On-Line Firms See AT&T Adding to Brutal Battle"


New York - AT&T Corp.'s plan to offer free Internet connectivity will bring more people into "cyberspace", but will also escalate the already brutal market battle between Internet access providers.

As a result of AT&T's announcement shares in major on-line providers fell sharply, as investors again worried about AT&T's entry into the consumer Internet business.

Many top access providers fear that AT&T's name recognition will lead new users to them. As a result the industry now realizes that it must do a much better job in attracting and retaining a stable audience.