For AT&T, A Bleak Year
And A Weak Outlook . .

guidance makes the market nervous," said Patrick
Comack, an equity analyst for Guzman & Co. who has a "sell" rating on AT&T.  Merrill Lynch downgraded AT&T stock to "neutral" from "buy."

This announcement comes just weeks after the
company said it will trim 3,500 jobs and will delay merit raises for top management.  The cuts represent about 5% of AT&T's workforce and will take place in the company's Business Services Division, which sells telecommunications services to corporations.  Over the past two years, AT&T has cut its staff by about 10,000 as it continues to face declining revenues.

Verizon Service Levels
Continue to Worsen in 2002

Percentage of Verizon service problems that lasted more than 48 hours:

First Quarter 2002  11.7%
Second Quarter 2002  15.6%
Third Quarter 2002  21.6%

Customer trouble reports per 100 access lines:

First Quarter 2002  1.86
Second Quarter 2002  2.18
Third Quarter 2002  2.37

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Information Quarterly