No-holds-barred battle for long-distance calls

Article Abstract:

It is increasingly difficult for callers to make sense out of the long-distance calling industry as providers, such as MCI, AT&T and Sprint, scramble for customers and launch negative advertisements against each other. AT&T and MCI are at odds over discount calling plans, calling each other liars in recent newspaper and television ads. Industry experts say there are four basic methods callers can use to select a discount program. Callers who are not part of a discount calling plan are probably paying more for long-distance calls. Users should spend less time deciding which provider to choose and more time picking the best plan their carrier offers. MCI's New Friends and Family may be the best plan on the market. Callers who spend less than $10 a month on long-distance calls will probably save the most money by using a smaller, cut-rate carrier over AT&T, Sprint and MCI.

Market Analysis, System selection

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Telephone price war heats up; Sprint's flat rates open a new front

Article Abstract:

Long-distance telephone carrier Sprint Corp announces a flat rate pricing strategy to increase its market share beyond its current 10 percent and to help it compete successfully against MCI and AT&T for long-distance service customers. MCI has nearly 20 percent of the long-distance market, while AT&T dominates with 60 percent of the market. Sprint plans to charge customers 10 cents per minute for long-distance telephone calls during weekend and evening hours, and 22 cents per minute during weekday hours. Currently, AT&T and MCI have complex pricing structures for their long-distance customers that customers believe are hard to understand. After Sprint made its pricing announcement, the stock price of AT&T fell $1.375 to $48.25, while the price of MCI stock dropped 93.75 cents to $18.0625. However, Sprint's stock rose 50 cents to $27.125.

Prices and rates, Competition, Marketing Strategy, Pricing Policy

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MCI deal reverberates on both sides of the Atlantic: Behind a giant deal, a strategy to attract customers in Europe

Article Abstract:

British Telecom's $22-billion acquisition of MCI may be motivated by a desire to compete in the European long distance service market. The current acquisition gives BT full ownership of the second-largest long distance carrier in the US market. The European aspect of the MCI deal involves the opening up of the previously state-controlled monopolies in the telecom market. BT has been engaged in a number of partnership agreements designed to bolster its ability to compete in the French and German telecommunications markets, including deals with France's national water company, Compagnie Generale des Eaux and a German electric utilities supplier. The control of MCI and its long distance network in the US will give BT an advantage in attracting European business clients, note analysts.

Planning, Mergers, acquisitions and divestments, Company acquisition/merger, British Telecommunications PLC, Company business planning

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