 a couple years away from disappearing from AT&T's roster altogether, though the company denies that it's quitting the field. Still, a month later - when the company's second quarter net earnings dropped 80 percent and its stock earned "junk" status from Fitch Ratings - it announced that it would stop marketing residential services altogether, at a savings of about $500 million. The new focus would be on business services, which make up almost three- quarters of its revenue. Some observers thought the move spelled trouble. "We've just demolished the most successful models of competition," said the co-director of Consumers Union, which publishes Consumer Reports, in a Los Angeles Times article. "For the vast majority of phone users, this is moving us back to the world of monopolies." Down to business You can't blame AT&T for homing in on its most profitable segment. Contracts continued to flood into the business unit, like a $5.4 million contract with Bombay Company, a broadening of its agreement with Hilton Hotels in a new $67.5 million contract, or its $7 million, three-year deal with Deere & Co., all signed in the first half of 2004. The unit aspires to be a one-stop shop for fulfilling all the communications service needs of both small businesses and large corporations. In voice communications, AT&T Business offers domestic and international long distance, local service, toll- free numbers, and call routing for sales and customer service call centers. In data, the company offers a full range of services from basic DSL Internet access and small business hosting packages all the way up to managed global network services, VPNs, video and audio conferencing, and wholesale network transport capacity. The business services division also offers products specially tailored to the needs of government agencies through AT&T Government Solutions. The Departments Treasury, State, Energy and Justice are among AT&T's government clients. VAULT CAREER LIBRARY 2005 Vault Inc. Vault Guide to the Top Telecom Employers GETTING HIR