The new alliance between AT&T and the University could bring the telecommunications company about $90 million -- or 360 million 25-cent calls from a phone booth.

Of that money, about half of it comes from business the American Telephone & Telegraph Co. does with the University, said Mark Trierweiler, division manager for AT&T's public relations.

AT&T will collect $1.7 million for electronically linking the Commonwealth Campuses. The rest of the money will come from long-distance revenues, Trierweiler said.

The University has contracts with thousands of companies to provide different goods and services, such as IBM and office-supply companies, said Roger Williams, assistant vice president and executive director of University relations.

But the new alliance goes beyond these University contracts, he said. This alliance will benefit both parties -- providing the school with some funds necessary to expand telecommunications and AT&T with higher profits.

"I think they're (AT&T) going to be able to make a lot of money through their own marketing efforts," Williams said. "They're in business to make a profit."

The deal plans special rates for students living on and off campus, faculty, staff and alumni. AT&T will also equip the Penn State Scanticon Conference Center Hotel at the University's Research Park with different products, including portable personal computers, fax machines and cellular phones.

"This is the first time we've been able to show one customer how all of our (products) work together," Trierweiler said. "Penn State can now be a showcase."

In addition to showing off new AT&T technology, the University will receive money for expanding telecommunications. The partnership may generate $10 million in new funds, as well as $17 million in existing contracts and possibly $20 million in cost savings for students, staff and faculty during the next 10 years.

AT&T hopes to utilize the University to expand its research -- a major reason the company was attracted to Penn State, said Eileen Dixon, who works in AT&T's public relations.

"As new products and services come up, Penn State is going to help us test those and refine them," she said.

The types of testing and research will take different forms depending on the product, Trierweiler said.

"The alliance permits a pretty broad interpretation," he said. For some products, students might act as guinea pigs, giving input before AT&T decides to make the product available to everyone.

"Last year we introduced the personal communicator," Trierweiler said. "It would have been nice to have Penn State to test it on."

No other universities have arrangements like this yet, although AT&T is examining other possibilities. Neither Dixon nor Trierweiler would say which other schools were interested.

"This is the first and we're hoping there will be more," Dixon said.

Trierweiler said most universities realize they need to upgrade their technology to stay competitive.

"We have a lot of universities calling us," he said.