Embarq, AT&T: Access line loss stabilizing

Two major telephone companies are once again saying that access line loss is slowing. The same comments were made in November when third quarter results were announced, but many industry analysts were skeptical, given the sharp rise in cable VoIP and service bundle choices.

Embarq said today that it lost 85,000 access lines due to competition, in addition to 5000 lines surrendered in an exchange sale. By contrast, Embarq lost 89,000 access lines to competition in 2005.

“While we would prefer not to lose a single access line, given that we faced more competition in the fourth quarter of 2006 than we did in 2005, to lose fewer access lines than we did a year ago is encouraging,” said Dan Hesse, Chairman and CEO of Embarq, in a prepared statement. “Since the launch of our company less than a year ago, we have introduced practical, innovative new products and services, simplified our offers, and taken many other steps to better serve our customers. Those efforts are clearly having an impact on our access line metrics.”

On Tuesday, AT&T CFO and Executive Vice President Rick Lindner told the Citigroup 17^th Annual Global Entertainment Media and Telecommunications Conference that line loss has stabilized.

“Line loss has been relatively stable,” he said. “The trend in terms of wireless substitution – that trend line is flattening out a little bit. For some of the cable folks that have been in the market for some time – we are seeing those losses flatten out a little as well.”