Last year at this time, AT&T WorldNet was floundering. All of its AT&T WorldNet Managed Internet Services (MIS) were provisioned from BBN Planet's (now GTE Internetworking) backbone. And the Internet service provider division was coming up short with other business services.
But the company is righting itself. Today, about half of its MIS users are on AT&T's WorldNet Internet backbone. And the company in the past few months has announced a handful of services that address the business market. These include WorldNet Virtual Private Network service, WorldNet Business Dial service and enhancements to its SecureBuy electronic commerce service.
Network World Senior Writer Denise Pappalardo recently talked with Kathleen Earley, vice president of networked commerce services at AT&T WorldNet, about the company's latest developments and where the ISP is headed.
AT&T WorldNet has gone through a lot of change in the past six months, including migrating existing MIS customers from BBN Planet's backbone to WorldNet's backbone. How is that migration going, and when will all MIS customers be on WorldNet's backbone?
We have over 1,000 customers provisioned on AT&T's backbone for MIS. But more importantly, in November we provisioned over 255 customers onto our own backbone. That number exceeded any month when we were working [exclusively] with BBN. All MIS customers will be on AT&T's backbone by the end of [1998].
AT&T recently rolled out its WorldNet Virtual Private Network service. Why should network managers choose to get their VPN/intranet services from AT&T WorldNet when some other ISPs have been offering these services longer?
We did not announce our service until we had a customer up and running on it. Others who position themselves as our competitors have announced their services at least twice and may still not have any customers up and running.
The integration of our frame relay services is also a benefit to customers. They come to us because they are using our frame relay services, and they can add a dedicated port for Internet access. This lets customers keep appropriate traffic on our private data network and Internet traffic on the Internet network.
AT&T had been active in the electronic commerce service arena in 1997. Many Internet users still have security concerns or simply prefer to shop at a mall. How do you see this changing in 1998?
We have over 7,000 businesses running their Web sites inside our network. The Internet was first a place to publish your information. Now customers are finding out that they can change their costs by providing information and customer services on the Internet rather than just using an 800 toll telephone service. We expect a significant revenue stream from our [electronic commerce services] business.
When you say 7,000 businesses running their Web sites inside your network, do you mean 7,000 Web hosting customers?
Yes. And they represent a transition that is occurring in the industry that started in information publishing. Now we have several hundred people using our SecureBuy service and hundreds [of contracts] on back order.
For instance, the Muscular Dystrophy Association is a SecureBuy customer. During the Jerry Lewis [MDA Labor Day] Telethon, the group received tens of thousands of donations through their Web site. Now they maintain the site for the entire year.
Does AT&T WorldNet plan on offering IP voice or fax services?
We have an IP voice trial today. AT&T Jens [an AT&T subsidiary] has [since September] been selling calling cards in Japan that carry voice traffic over AT&T Jen's IP network.
What about domestic trials or services?
We have a lot of things in the works for IP fax and voice. We will aggressively go after this market. IP is front and center [in] this company's future.
Are there concerns that these types of services will affect AT&T's other business areas, primarily long distance?
One has to lead in these markets - its important to your future. I know that my mother is not going to be making any IP voice calls soon, but there are certain market segments where these services fit.
From an Internet standpoint, how do you view the pending WorldCom/MCI merger?
AT&T plans to aggressively compete with WorldCom in Internet services, and we are well positioned to do that. We have a profound footprint in frame relay and private lines that no one can compete with. Mergers and acquisitions are an interesting way of approaching the marketplace.
Does AT&T plan on growing through acquisition?
I can't really comment on that.
Does AT&T believe the merged MCI/WorldCom entity will have any unfair advantages over the rest of the ISP industry?
This is an open and competitive marketplace, and at the end of the day, customers are going to buy based on quality of service, availability and reliability. Marketing tactics will not carry users for very long.
