AT&t Internet Promotional has announced it is shutting down in 2018 after a five-year run, a move that is expected to cost the US telecommunications company more than $1 billion in the first year.
The company has been plagued by problems since its launch in 2010.
It was the subject of a number of investigations and was forced to buy back a stake in its troubled US business, Time Warner Cable.
The telecoms company has since faced scrutiny over its merger with Charter Communications, and last year a federal court found the merger did not meet the antitrust requirements.AT&T’s CEO, Randall Stephenson, said the decision was made after careful consideration.
He said: ‘The industry has changed dramatically in the past five years.
The changes are unprecedented and I believe this is the right time to reevaluate our business strategy and business strategy.’
The transition to a new business model and regulatory environment is likely to be challenging.
This is not an easy change to make.
We have done this with other businesses in the industry.
We are confident that our new business models and regulatory regime will be successful.’
However, in order to support our growth, we need to continue to invest in our businesses and we will continue to support the people and communities that are our customer base.’
He added that the company will remain focused on its core competencies.
‘We will continue our mission to deliver the best internet experience and services to our customers.’