AT&T to Add Services from IBM, Inks Network Pact

AT&T said Tuesday it would buy more technology services from International Business Machines and will sell telecommunications services to IBM worth $1 billion over five years.

AT&T said the additional services from IBM would incur charges for AT&T of about $60 million in 2007, according to a filing with regulators. In return, IBM will buy AT&T telecommunications and network management services for itself and its customers.

While the telecommunications service deal will provide new revenue, it is not expected to have a material impact on financial results, AT&T said. It said it expects charges of about $80 million over the next 12 months related to that agreement.