Verizon says canceling in-flight phones

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Verizon says canceling in-flight phones
Mon Jun 26, 2006 5:08pm ET
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Email This Article | Print This Article | Reprints=20
[-] Text [+] NEW YORK, June 26 (Reuters) - Verizon Communications Inc. (VZ.=
N: Quote, Profile, Research) is canceling its in-flight phone service in co=
mmercial airplanes, a spokesman said on Monday.
The company will end its Airfone service by the end of the year, said spoke=
sman Jim Pilcher.
The decision affects about 1,000 airplanes operated by Continental Airlines=
 (CAL.N: Quote, Profile, Research), Delta Air (DALRQ.PK: Quote, Profile, Re=
search), US Airways (LCC.N: Quote, Profile, Research) and UAL Corp.'s (UAUA=
.O: Quote, Profile, Research) United Airlines, he said.
"The decision is based on Verizon Communications's strategy to focus on its=
 core business, which is broadband, wireline and wireless services," Pilche=
r said.
Airfone service will remain available for the time being to corporate and g=
overnment customers, he said.
Verizon employs about 140 people in its Airfone business, most of whom work=
 in Oak Brook, Illinois. Pilcher said the company has not decided whether t=
hey will be laid off or transferred to other positions.
"Right now we're exploring all options," he said.
The company acquired the business when it bought telephone company GTE in 2=
000.
The service costs far more than the prices most people pay to make phone ca=
lls on their home phones or mobile phones. Domestic calls cost $3.99 for th=
e initial connection and $4.99 per minute.
For Verizon Wireless subscribers, the service costs 69 cents per minute, or=
 10 cents a minute for subscribers who pay a $10 monthly fee.
Verizon shares fell 5 cents, or less than 1 percent, to close at $32.78 on =
the New York Stock Exchange.=20
=C2=A9 Reuters 2006. All Rights Reserved.
Roger & Amanda La France 

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