Newspaper article THE JOURNAL RECORD

Wireless, Cable Give Local Phone Companies Run for Money

Newspaper article THE JOURNAL RECORD

Wireless, Cable Give Local Phone Companies Run for Money

Article excerpt

FORT WORTH (NYT) -- There are two major impending challenges to the local phone companies: wireless and "cable voice" telephone systems.

Wireless phone companies are cutting prices and boosting coverage areas, and cable companies are speeding up improvements to their systems to so they can send and receive information.

"I see voice service by wireless companies as attractive and data by cable modem," says Lawrence Vanston, president of Technology Futures in Austin. Within 10 years, the local telephone companies will lose almost 40 percent of their revenues to companies selling local phone service through alternative methods, Vanston predicts. But the local phone companies are holding their own right now. Few people have dropped their phones for wireless service, says Liz Dunn, spokeswoman for AT&T Wireless, the nation's largest wireless phone service. "We don't see it today as a big trend yet, but it's kind of like `Watch this space for more details,' " Dunn says. …

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