Article: SUCCESSFUL INVESTING: Cost-cutting AT&T rates a 'hold'

Q. I'm an AT&T Corp. shareholder seriously reconsidering my telecom holdings. What's the outlook for the company? - B.P., via the Internet

A. The nation's largest long-distance carrier keeps on tightening its belt.

Despite its enormous annual revenues, consistent capital spending and excellent ratings on J.D. Power customer-satisfaction surveys, Ma Bell faces fierce price wars and competition from wireless and Internet-based calling.

It has aggressively expanded its offering of "bundled" local and long-distance services to reach a total of 35 states. It also plans to offer Internet-based telephone service in the top 100 U.S. markets by the end of this year.

To cut costs, the company has ...

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