AT&T basically went downhill as even for Internet, they were slow in offering services as AT&T WorldNet did not exist until 1994.
In 1994, the commercialization of the Internet accelerated rapidly, forcing major telecommunications giants like AT&T to compete directly with pioneering network operators like BBN (Bolt Beranek and Newman).
AT&T's Early Moves. In October 1994, AT&T launched its first public World Wide Web presence (
www.att.com). However, AT&T initially lagged behind rivals in offering direct, commercial Internet backbone and access services, leading it to look for external partnerships to catch up quickly.
Having built and operated the original ARPANET, BBN formed its commercial Internet service provider (ISP) division, BBN Planet, in 1994. By the end of that year, BBN acquired regional networks like SURAnet, making it the largest provider of corporate and institutional Internet access in the United States.
Long-distance rival MCI moved faster than AT&T into commercial Internet infrastructure. Alongside Sprint, IBM, and UUNet, MCI operated one of the primary commercial Internet backbones as the government-funded NSFNET prepared for decommissioning in 1995.
Because AT&T needed immediate enterprise-grade Internet capabilities to counter MCI and Sprint, AT&T forged a major alliance with BBN Planet in mid-1995.
According to The New York Times, AT&T guaranteed BBN Planet at least $120 million in revenue over three years to supply Internet access and security services to AT&T's corporate clients, while also purchasing a minority stake in the company.
While the BBN partnership gave AT&T an immediate foothold in corporate Internet services, AT&T soon built out its own massive consumer and enterprise infrastructure, launching dial-up service AT&T WorldNet in 1996. So basically AT&T would use BBNPlanet's backbone and BBNPlanet would then use MCI's backbone for anything they didn't handle directly.
Meanwhile, GTE acquired BBN in 1997, eventually merging it into what became Verizon's network assets.
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