AT&T is planning to enter the "daily deals" business by offering daily deals in local markets in its YP.com site.
AT&T hopes to leverage its comprehensive local advertising business. Over 23 million unique visitors hit its directory, YP.com, every month. The company also got more than $1bn from online ad sales in 2010.
AT&T Interactive CEO David Krantz told Dow Jones Newswires that the company could be "a fast follower."
A year ago, AT&T launched Buzz.com, which has user generated content through comments and reviews about businesses. The service is similar to what Yelp offers.
In the daily deals business, other players include Groupon which is associated with the original Daily Deals. Google has also said it is entering the business, while Microsoft has introduced a similar feature in its search engine Bing last week.
However, Krantz has said the space existed for AT&T to succeed.
Krantz said, "There are plenty of opportunities for trusted brands with reach."