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May 01, 2012

AT&T to Shutter ATM Service Throughout U.S.

AT&T has announced its intention to discontinue certain Frame Relay (FR) and Asynchronous Transfer Mode (ATM) services throughout the continental United States, Hawaii, Alaska and Puerto Rico, citing waning market demand.

 Originally, designed as an alternative to common data link technologies like Ethernet, ATM transmits voice and data using a fixed channel, or a direct route between two end points, to help improve the quality of service (QoS) over high traffic networks. However, the price and performance benefits of newer, IP-based technologies have made ATM hardware less necessary for service providers like AT&T.

As such, AT&T is looking to shutter the service in lieu of next-generation IP technologies that provide higher bandwidth and a wider range of applications. The carrier has said that all affected areas have already been replaced with multi-protocol label switching network services, meaning "public convenience and necessity should not be impaired by the proposed discontinuance."

AT&T said that it plans to discontinue offering the service to new customers on May 21, 2012. Current subscribers who wish to continue receiving the legacy service can do so, on a month-to-month basis until the carrier shutters the service for good on April 30, 2016. All affected parties should have already received a letter from AT&T describing the changes.

Although no one is expected to fight the modification, AT&T must still go through the formal process with the FCC, where it submits an application and provides 30 days for public comment. Historically, the FCC declines to authorize such an application only when customers would be unable to receive comparable service from the carrier in question or a reasonable substitute from a competing provider.

Therefore, it is widely expected that the FCC will green-light the proposal following the 30-day waiting period.

In a separate filing, AT&T has requested the authority of the FCC to discontinue its dedicated, high capacity SMARTRing network service in Alabama, Florida, Georgia, Kentucky, Louisiana, Mississippi, North Carolina, South Carolina and Tennessee. The carrier again cited low market demand as the reason for the discontinuation of the service.


Edited by Brooke Neuman


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