BT-MCI merger reshapes telecom industry; even the giants will be unable to go it alone

Article Abstract:

British Telecommunications' (BT) $20 billion acquisition of MCI Communications (MCI) will have a profound affect on the US telecommunications industry. BT-MCI and other large international companies will enter new markets and take local traffic away from the local telephone companies. AT&T and the RBOCs will need to acquire global network assets in order to compete with international telecommunications companies. Those companies lacking the ability to compete worldwide will either be acquired by the larger companies or end up servicing niche markets. The larger companies, including AT&T, France Telecom and Deutsche Telekom, must be ready to acquire or be sold. BT-MCI will probably be the new industry leader. MCI's revenue growth is already outpacing AT&T and the company holds an edge with corporate clients.

Telecommunications, Telephone Communication, British Telecommunications PLC, MCI Communications Corp., MCIC, International communication, International communications

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AT&T - SBC merger plans are crumbling; legal hurdles, culture clash bog down negotiations toward $50 billion deal

Article Abstract:

The proposed merger between AT&T and SBC Communications appears to be dissolving. The $50 billion merger would have been the largest deal in telecommunications industry history. The companies have been unable to agree upon a financial and management structure that would work for both of the them. The companies also underestimated the negative response of industry rivals and federal regulators, all of whom quickly protested when talks of a merger began. What steps SBC should attempt to enter the long distance market was also a point of contention between the two companies. SBC would have to open its own local market to competition from rivals before the FCC would approve its entering the long-distance market, which would have to be gained in order for the merger to be approved.

COMMUNICATION, Communications, Broadcasting and Telecommunications, Laws, regulations and rules, AT&T Corp., T, Long distance telephone services, AT&T Inc., SBC, Local telephone services, Long-distance telephone service, Local telephone service

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