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K.C. Neel
In an effort to shrink its dependence on its dwindling consumer long-distance revenues, AT&T is considering charging Internet retailers a commission each time a consumer buys a product over the company's telecom broadband network.
A commission on each transaction would be a departure from the flat rates or traffic volume-based fees telecom companies generally charge today. The program is already in use in Ma Bell's PocketNet service on AT&T's wireless phones.
Should the program be expanded to include its broadband service, every time customers who get cable, high-speed Internet access or local phone service over an AT&T line buy a product online, AT&T would get a cut from the merchant offering the product.
The program might help AT&T generate more fees, but it might chill e-commerce if the terms are too stringent. Some analysts wonder whether interactive services and e-commerce will work on broadband networks, because everyone wants a piece of the pie.
Forrester Research analyst Josh Bernoff believes t-commerce (electronic commerce transactions using broadband TV) could prove difficult because everyone in the distribution chain will want a cut of each product sold. A study by McKinsey & Co. and Salomon Smith Barney suggests some online merchants would lose money if they had to pay a fee for each transaction, and such a scenario could alienate some Web retailers already struggling to make a profit with online sales.
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