New York — AT&T is bailing out of a major part of the pay-for-service telephone business, dealing a serious blow to psychics, sex lines and other companies that use 900 numbers.
"This could be the final death knell for the 900 business," said Ed Lavergne, a Washington lawyer who has worked with the telecommunications industry.
AT&T stopped providing billing services for new 900 customers as of Jan. 1, and will discontinue billing for all such numbers Dec. 31. The decision was primarily a financial one, said AT&T spokeswoman Jean Hurt. "The market has kind of changed," she said.
But she acknowledged that the tawdry reputation of some 900 services and concerns about AT&T's image may have played a part. "I think that entered into it, probably," she said. "As with so many things, you just look at what you're getting out of it and what you're putting into it."
MCI also offers 900 numbers.
"We don't have any plans to make any immediate changes," spokeswoman Audrey Waters said.
The 900 business was created in the 1980s. While 800 numbers are free to the caller and paid by the person or company at the other end, callers pay the freight for 900 numbers. A popular psychic, for example, charges $4.99 a minute.
Up to now, AT&T and MCI have billed callers through local telephone companies.
AT&T's cut? According to Peter Brennan, director of development for the People2People Group, AT&T's basic rates were 35 cents a minute for transporting the calls, and 12 percent of gross charges for billing.
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