Fast-growing phone concern said to discuss U S West deal

Article Abstract:

International phone services provider Global Crossing Ltd. is in talks to merge with local services provider U S West Inc., the smallest of the Baby Bells, in a stock swap deal worth over $30 billion. The arrangement could still be prevented either through the actions of long-distance company Frontier Corp., whose March acquisition by Global has not been finalized, or through antitrust action by regulators. The Telecommunications Act of 1996 forbids the Baby Bells from offering long distance in any of their local service markets until they have opened those markets up to competition. U S West is considered, of all the Bells, to be the most behind in accomplishing this. A merger between U S West and a company that included Frontier would be a violation of the Act. Differences in the culture of the two companies are a further obstacle.

Acquisitions & mergers, Wired Telecommunications Carriers, Telephone Communications, Telephone communications, exc. radio, Bermuda, Intnl Telephone Service, Mergers, acquisitions and divestments, Telecommunications services industry, Telephone services, Global Crossing Ltd., U S WEST Inc., GBLX, Regional Bell Operating Companies, International telephone services

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A local phone company aims high

Article Abstract:

The Frontier Corporation is trying to evolve beyond its local phone monopoly into a national provider of voice, video and data services. In 1996 Frontier acquired part of the national fiber optic network being built by Qwest Communications International. The company hired Joseph P. Clayton as chief executive a year ago. Some people in the industry think he was hired to make Frontier into a takeover prospect. Frontier's fiber optic assets were acquired from Qwest for $500 million and are now worth billions.

Comment:

Frontier Corporation is trying to evolve beyond its local phone monopoly

Strategy & planning, Telecommunications, Company Planning/Goals, Frontier Corp., Article

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