New phone firms in Europe connect with U.S. investors
Article Abstract:
New European phone-company start-ups are increasingly turning to U.S. investors and fund managers for financing. These new types of European telecommunications companies are relying on capital markets to establish dominance within Europe's wide open phone market prior to its liberalization on Jan 1, 1998. Despite the inherent risks involved in the European market, American investments are growing. Morgan Stanley Capital Partners, for example, has invested $200 million in Scitor, a global phone network. One of Morgan Stanley's managing directors, Frank Sica, maintains that Scitor's adoption of U.S.-type accounting methods is paramount to providing a familiar environment where American investors are likely to increase their holdings. Another example of the merger between the European market and American investors is Colt Telecom Group's initial relationship with Fidelity Investments. Fidelity is responsible for the creation of Colt in 1993.
Publication Name: The Wall Street Journal Western Edition
Subject: Business, general
ISSN: 0193-2241
Year: 1997
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C-Tec Corp. plans to split into 3 firms
Article Abstract:
C-Tec is splitting into three separate shareholder-owned companies, following the lead of AT&T, ITT, Dun and Bradstreet, 3M, and others. The new companies include CTCo, which will combine the companies' historic rural Pennsylvania telephone service and related engineering units, C-Tec Cable Systems of Michigan, and RCN Telecom, which will provide East Coast residential communications services. The split was designed to organize regional companies, each with a specific business, in order to appeal to shareholders. C-Tec is also following a trend set by Bell Atlantic, Nynex, SBC Communications, and Tele-Communications, to separate cable, telephone, and other telecommunications interests. C-Tec reported $35 million in cash flow on revenues of $75 million in 1996, while RCN Telecom generated no income and lowered C-Tec's overall income 60% in 1996 as compared to 1995 figures.
Publication Name: The Wall Street Journal Western Edition
Subject: Business, general
ISSN: 0193-2241
Year: 1997
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Losses in space: Iridium's downfall: the marketing took a back seat to science; Motorola and partners spent billions on satellite links for a phone few wanted; counting on 'user dexterity'
Article Abstract:
Last week, Iridium LLC, builder of the $5 billion global satellite communications system, filed for bankruptcy. Motorola, which owns 18% of Iridium, still believes in the project, but it may be too late to overcome profound marketing and management flaws. The telephone itself is large and clunky and cursed with adapters and other unwieldy accessories. The service is expensive, originally costing $3,000. And one needs "user dexterity," or perfect positioning to connect with one of the 66 satellites that orbit the Earth. Nothing can block the line of sight. Former Iridium chief Edward Staiano and his board failed to build a fundamental marketing strategy in time for what was a premature launching of the satellites. Thus, the company, up to now has only about 20,000 customers.
Publication Name: The Wall Street Journal Western Edition
Subject: Business, general
ISSN: 0193-2241
Year: 1999
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