AT&T Worldnet may not be the world's largest ISP, but as part of an organization with 50 million customers, used to playing in tough global markets, it's bold and adaptable with new products and pricing plans.

by ISP-Planet Staff [January 22, 2003]

AT&T Worldnet has always been one of the more adventurous ISPs in the pricing area. As a part of a long distance company, AT&T operates in a highly competitive global market, and has implemented sales methods such as prepaid cards that are still unusual in the ISP space but are quite common elsewhere in the telecoms universe.

Now AT&T has unveiled its Family Plan, which offers three separate accounts, each with six e-mail addresses, for a monthly fee of $23.99 billed to a single address. A promotion can be viewed here. The offer is only available to customers of AT&T local or long distance phone plans.

Ray Solnik, vice president of data services and marketing for AT&T Consumer, said, "the Family Plan illustrates where we think the business is going. We want to be a leading ISP serving distinct customer segments with differentiated offerings. It's time for the industry to evolve to address specific customer needs."

AT&T Worldnet is conducting research and talking to customers to learn more about what services could sell well. For example, in 2001, the company launched video e-mail as a free feature for Worldnet subscribers. A more recent addition, AT&T Worldnet Access by Phone, allows users to listen to and reply to e-mail over the phone for an additional fee of $4.95 per month.

As the company continues to innovate, it will probably partner with more companies serving ISPs. At present, AT&T uses Brightmail for anti-spam and anti-virus services (which it offers for free) and uses Esaya's TrueSwitch technology to make customer transitions easier.

Worldnet has always been quick to adjust its pricing plans as market conditions changed. When it became clear, at the end of 2001, that the free ISP would soon disappear, AT&T withdrew its i495 plan, which offered limited access for $4.95 per month.

At that time, the company charged $16.95 for 150 hours per month and $21.95 for unlimited access. Today, AT&T phone plan customers can get unlimited access for $16.95, and those not on AT&T plans get capped at 150 hours. Those not on AT&T plans can pay $21.95 for unlimited access.

Asked whether the company offers bundles of local, long distance, and Internet access, Janet Wyles, AT&T spokesperson, pointedly noted, "we're in eight states with local phone service. The incumbent monopolies have a different opportunity because they do long distance in 35 states. Where we can bundle, we do."

Solnik declined to discuss current marketing plans, but noted that AT&T has many marketing options. "In general, we use a broad marketing mix," said Solnik. "It depends on the offering and the market segment. Radio today serves certain segments like the commuter segment, for example. We use inserts in phone bills, e-mail, TV, radio, and more. We are working more and more with internal channels. We get calls from millions of customers every month, and when they call us, we'll make this offer available."

AT&T Worldnet may not be the world's largest ISP, but, with about 50 million customers, AT&T Consumer serves a global population larger than that of most nations. That should give it the resources to experiment and innovate, making it an ISP to watch.

—End