A new alliance between the University and AT&T may exceed reaching out and touching someone -- it could be big enough to impact everyone involved in University activities.

University President Joab Thomas said the partnership, which will be officially announced today, stemmed from an extension of contracts with the American Telephone & Telegraph Co.

"It's something old, something new," he said. "We have a lot that's new."

Thomas said "gifts" from the company will help the University expand telecommunications, an effort that prompted administrators to ask the state for more than $20 million this year.

The University's plans to wire all buildings to electronic information channels, modernize classrooms and keep equipment updated were announced at last month's University Board of Trustees meeting.

AT&T will provide funds for some of these updates, as well as connect the Commonwealth Campuses and support video expansions, said Executive Vice President and Provost John Brighton.

Working with AT&T will affect different University activities, he said. The company will support the Four Diamonds Fund on a continuing basis and also introduce a special long-distance rate program to alumni, Brighton said.

In turn, AT&T will receive University services while forming long-term relationships with students -- a way to gain future customers, he said.

David Wormley, chairman of a University study group on information infrastructure, said although he had not heard any details about the partnership, it would definitely help the University improve telecommunications.

The study group presented its report to the trustees in January, discussing what is needed to enhance and upgrade current equipment as well as expand capabilities to the Commonwealth Educational System.

In addition to obtaining state money, the study group recommended making internal reallocations and strategic alliances with technology companies.

"(An alliance) helps in exchanging technical information, in developing joint activities together," Wormley said.

Creating some type of partnership has been under way for about 10 years, Thomas said.

Undergraduate Student Government President Chris Saunders said he first heard about the possibility of a deal with AT&T early last semester.

"It's good," Saunders said. "I think that students will derive benefits from it."

Saunders said the deal may help fund student events.

"I believe the deal is going to be pretty much akin to what we have with Pepsi," Saunders said.

Thomas will unveil more details at a news briefing today.

AT&T currently provides some telephone services to students at a special rate. The alliance should reduce costs for on- and off-campus students, Brighton said.

"It's a pretty full package and a very good opportunity for us," he said.