Once AT&T names new leader, climb back to top will be tough

Article Abstract:

A beleaguered AT&T is expected to name Hughes Electronics executive C. Michael Armstrong as its new chmn and CEO, as soon as today. The telecommunications giant is struggling with management and financial problems amid an industry boom. Numerous smaller rivals are weakening AT&T by stealing customers. AT&T will announce its latest quarterly financial profits today, which are expected to drop off sharply from the comparable period in 1996. The 59-year-old Armstrong has distinguished his Hughes tenure with intensity and salesmanship, according to analysts and colleagues. AT&T stock continues to produce dividends for millions of shareholders, but telecommunications experts say AT&T must plot a long-term course by 1998 or 1999. AT&T's long-term future could depend on its activities in the $100 billion local telephone business, according to nearly all telecommunications analysts. Armstrong would succeed Robert E. Allen, who resigned in Jul 1997 after nine months on the job.

Telecommunications, Telephone Communication, Management, Officials and employees, AT&T Corp., T, Appointments, resignations and dismissals, Company executive, Computer executives, Armstrong, C. Michael, Company Business Management

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In MCI-Worldcom theory, new view of competition

Article Abstract:

The acquisition of MCI by Worldcom will promote competition in the telecommunications industry, according to Worldcom Chmn, Bernard J. Ebbers. Ebbers claims that the combining of the two communications companies would be in the best interest of the 1996 Telecommunications Act. He maintains that MCI Worldcom will build alternative networks to provide business and residental customers with new options. Politicians that criticize the Telecommunications Act usually cite the lack of alternatives for residential customers in broad local coverage. Horizontal mergers and acquisition are looked on with favor by those involved, because consolidating operations saves so much money. However many analysts are convinced that vertical mergers will be needed to break up the monopoly held by local telephone companies.

COMMUNICATION, Communications, Broadcasting and Telecommunications, Mergers, acquisitions and divestments, Company acquisition/merger, WCOM, MCI Inc., MCI Communications Corp., MCIC

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