May 18, 2000

AT&T plays catch-up with relaunch of wireless Internet service

NEW YORK (AP) -- Lagging way behind in bringing wireless Internet access to its cell phone customers, AT&T finally launched a mobile Web service for consumers on Wednesday with the first plans that allow unlimited use and the first that's free for every subscriber.

The introduction of AT&T Digital PocketNet comes nearly eight months after Sprint PCS blazed the trail into mobile Internet access with its Wireless Web service, followed by every major cell phone company except AT&T.

PocketNet is actually a relaunch of a pioneering -- but mostly primitive and unsuccessful -- mobile Internet service that AT&T introduced in late 1997 for its analog cell phone subscribers.

Since none of today's popular formats for adapting Web pages to a small cell phone screen could be used, the old PocketNet was limited to simple text functions like e-mail. AT&T stopped marketing the pricey $29.99-a-month service to consumers about two years ago as it began its push into digital cellular.

Now, hoping to make up for lost time, AT&T is trying to distinguish itself from a crowded field with the first set of wireless Internet plans permitting unlimited usage.

Rivals generally charge by the minute for wireless Internet access, deducting from a bucket of minutes that subscribers can use interchangeably for phone calls and Web time, or from a specific allowance of time allocated to Web use.

The new AT&T Digital PocketNet comes in three flavors.

The free basic plan provides unlimited wireless access, but confined to a set group of more than 40 leading Web sites, including ABCNews.com, Barnes & Noble.com, eBay, ESPN.com, ETrade and The Weather Channel.

To get e-mail and full run of the Internet on their cell phones, AT&T Wireless customers will need to sign up one of two plans with a monthly fee. For $6.99, they can get e-mail and fax services. For $14.99, they can view text from any Web site and use calendar and organizer services.

On the downside, the new AT&T services are only available on two digital cell phones, one made by Ericsson and one made by Mitsubishi. By contrast, Sprint PCS Wireless Web can be accessed on 15 different handsets.

Another negative is that PocketNet isn't available in some major cities including Atlanta, Kansas City and New Orleans because the service is carried by AT&T's data network, which covers far less of the country than does AT&T's wireless voice network. Rivals generally provide Internet and phone services on the same wireless network, providing greater coverage, but straining their network capacity.