AT&T Lets Customers Charge Online Purchases to Phone Bill

In a potentially revolutionary move for the U.S. broadband market, AT&T Inc. has begun to deploy a new billing service, allowing customers to buy digital content from select merchants, and charge these purchases to their phone bills.

The telecom giant has not yet released details on what kind of content is covered by the policy, or how the new billing service will be marketed. AT&T does acknowledge, however, that it has now begun implementing this landmark program, using the BSG Clearing Solutions’ Bill2Phone technology.

“AT&T recognizes the value of being able to bill digital content on the home phone bill,” explained AT&T spokeswoman, Jenny Parker. “End user customers appreciate being able to receive one combined and easy-to-read bill.”

BSG Clearing Solutions president, Greg Carter, meanwhile notes that his company has been “working for over two and a half years to facilitate billion of customers purchases to phone bills.”

“We’re beyond the test phase with AT&T, and we’re talking to many other LECs as well as cable companies,” Carter said.

The convenience of paying for web content, or even products, via a phone company has the potential to attract plenty of consumers, including many who don’t already make online purchases.

Around 40% of internet users do not have credit cards, according to the Yahkee Group, and 78% of those surveyed by Internet Retailer said that they “would be more inclined to purchase online if given a safer, more convenient payment method than a credit card.”

Offering such an option could quite possibly give AT&T a significant edge over other ISPs in the American broadband market.