AT&T Wireless Pulls Back on Push-to-Talk

AT&T Wireless (AWE Quote) is waving a white flag on the walkie-talkie front.

The teetering Redmond, Wash., wireless giant had planned to introduce two-way radio service this quarter. But executives on a conference call with analysts Friday said there had been a change of plan. Instead of preparing their own offering, AT&T Wireless executives said they would work with other carriers to develop a common platform -- delaying the project indefinitely.

To some observers, the move is just a case of a few more wheels coming off the nation's No. 3 wireless player. But others say the decision is a wise concession given AT&T Wireless' pending merger with Cingular, a joint venture of SBC (SBC Quote) and BellSouth (BLS Quote).

"AT&T Wireless is working hard not to look like a lame duck, but I think it is wise for them to wait on push-to-talk," says Yankee Group's Roger Entner. "It takes a lot of focus, energy and money to launch this service." ...