British will buy 20% stake in MCI in big U.S. foray; a $4.3 billion investment; pact reflects urgency of new telephone alliances and is a challenge to A.T.&T

Article Abstract:

British Telecommunications PLC buys a fifth of MCI Communications for $4.3 billion, a move that signals the British telecom giant's entry into the US telecommunications market. The objective is to set up an alliance that will provide multinational corporations with network services. The British Telecom-MCI partnership also presents a stiff challenge to AT&T, which has been trying to keep the British company out of the US but which, itself, has been expanding into foreign markets. The US and Britain are about to embark on a trade battle over regulations that influence the entry of foreign companies into each others' domestic telephone market. The market for network services for multinationals is worth $10 billion. These companies want a single package of services from a single vendor rather than dealing with a variety of vendors and services.

Telephone and telegraph apparatus, Finance, Investments, Partnerships, MCI Communications Corp., Strategic Planning, Multinational Corporation, Partnership

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AT&T and British rival clash; Telecom bid to grow in U.S. is opposed

Article Abstract:

AT&T is urging the Federal Communications Commission (FCC) to withhold approval of the bid of British Telecommunications PLC (BT) to provide a full range of network services to corporations doing business in the US and Britain (UK). AT&T has also applied for a similar license. AT&T officials, in arguing against a BT license, say that the latter has a near-monopoly of the UK telecommunications market and the company has restricted entry by other competitors. Non-British long-distance carriers, such as AT&T and MCI Communications can only provide services up to the borders of UK. Within the country, telephone calls have to be carried by local companies, such as BT. As AT&T accuses BT of playing by lopsided rules, BT officials argue that the UK has deregulated its telephone market and that restrictions there are no less onerous than in the US.

Electronic computers, United Kingdom, Telephone companies, T, Licensing agreements, American Telephone and Telegraph Co., Licensing, Proposal, Telephone Company, Telecommunications Service

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