Abstracts » Business

Rivals bury the hatchet

Article Abstract:

British Telecommunications (BT) and AT and T plan to set up a joint venture, a move which has led to a rise in BT's stock price. BT lost MCI and so needs a US partner, and AT and T needs to ally with a company with strengths in Europe. The JV is scheduled to be running by 2000, and revenues will commence at $10 billion, with a forecast of annual growth of 15%. The regulatory authorities in both Europe and the US have to approve the JV. Both companies should make gains with a limited commitment in financial terms.

Joint ventures, British Telecommunications PLC

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AT and T in a rush

Article Abstract:

AT and T will be able to move into local phone services following US telecoms legislation. The Telecommunications Bill, which deregulates the industry, was passed in Feb 1996. Baby Bells are involved in the local phone market, but AT and T argues that it could achieve a stake of some 33% in the local phone market. The company will have to purchase wholesale chunks of airtime to be sold on. The big US phone operators have supported the bill, as appears evident from a rise in their political donations.

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Telecoms race hots up

Article Abstract:

Mannesmann heads a consortium called CNI Communications Network International which has been the victor in an auction to acquire a stake of 49% in DBKom. DBKom is a telecoms network that Deutsche Bahn has constructed. CNI has an option to increase its stake to 74.9% and plans to replace Deutsche Bahn in the management of DBKom. The consortium includes AT and T, and Deutsche bank has withdrawn, giving Mannesmann a 70% stake in the consortium.

Other Communications Equipment Manufacturing, Fiber Optics Systems & Equip, Communications equipment, not elsewhere classified, Fiber optic networks, Mannesmann AG

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