IT'S UNCLEAR WHY ANYONE MIGHT BUY STOCK IN AT&T'S CONSUMER SERVICES, WHICH INCLUDES THE SHRINKING RESIDENTIAL LONG-DISTANCE BUSINESS.
REVENUE AT THE DIVISION HAS FALLEN FOR FOUR CONSECUTIVE QUARTERS SLIDING 9% IN THE SECOND QUARTER TO $5 BILLION VS. THE SAME PERIOD LAST YEAR.
THAT REVENUE THOUGH, HAS HELPED TO FUEL THE BROADBAND UNIT, WHICH NEEDS CASH TO UPGRADE MANY OF ITS CABLE SYSTEMS AND TO PAY OFF THE ACQUISITION DEBT.
IT'S UNCLEAR WHERE THE FUNDS WILL COME FROM IF THE UNITS ARE BROKEN APART.
INVESTORS ALSO MAY WONDER ABOUT THE BUSINESS SERVICES UNIT.
REVENUE GREW JUST 5.6% IN THE SECOND QUARTER VS. A YEAR AGO.
MANAGEMENT HAS SAID THIS SEGMENT SHOULD BE GROWING AT A 7% TO 9% CLIP, SAYS DRAKE JOHNSTONE ANALYST AT DAVENPORT & CO.
AND AT&T HAS SEVERAL SIDE BUSINESSES THAT MAY NOT FIT NEATLY WITHIN ANY OF THE PROPOSED DIVISIONS.
EXAMPLES INCLUDE TELEPORT, A LOCAL CARRIER AT&T BOUGHT IN JULY 1998, AND CONCERT A GLOBAL JOINT VENTURE BETWEEN AT&T AND BT FORMERLY BRITISH TELECOMMUNICATIONS, THAT THIS YEAR LAUNCHED VOICE AND DATA SERVICES AND AN INTERNET BACKBONE IN 17 COUNTRIES.