A late starter, AT&T is at sea in global race; key U.S. player avoids big foreign partnerships
Article Abstract:
AT&T, unlike other telecommunications companies, has shown reluctance to select foreign partners for establishing global networks that serve multinational corporations. By comparison, other European and US firms are developing alliances to compete in deregulated territories on both sides of the Atlantic. MCI is considering British Telecommunications, Worldcom and GTE as possible suitors. An existing MCI-British Telecom global networking services provider alliance, Concert, likely will be retained, regardless of the outcome. Sprint, France Telecom and Deutsche Telekom already are operating the other significant international alliance, Global One. By comparison, AT&T has kept a low profile and purchased minority stakes in several ventures. AT&T owns 40% of AT&T-Unisource, a consortium owned by the Dutch, Swedish and Swiss telephone companies. AT&T owns less than 15% of a major German alliance headed by Mannesman and German rail company Deutsche Bahn. AT&T has demonstrated uncertainty even before management changes, according to analysts and industry executives.
Publication Name: The New York Times
Subject: Business, general
ISSN: 0362-4331
Year: 1997
User Contributions:
Comment about this article or add new information about this topic:
Job cuts at AT&T will total 40,000, 13% of its staff; big losses in New Jersey; white-collar ranks hit hard as phone giant gets ready to split into 3 units
Article Abstract:
AT&T announces it will lay off some 40,000 employees in the largest job cut in the telecommunications industry, creating a 13% reduction in its 300,000-person workforce. New Jersey, where AT&T is headquartered, will lose 7,000 positions. The cut is larger than analysts had anticipated and will occur earlier than expected, with AT&T planning to complete 70% of the cuts by the end of 1996. AT&T's layoff is different from other large layoffs because it comes at a time when the company is healthy and not as a response to strong competition. The cuts are part of the company's plan to split into three independent companies focused on telecommunications, computers and telecommunications equipment. The reorganization is planned to make AT&T competitive in the local telephone and wireless communications businesses. The company plans a $6 billion charge against earnings for 1995 but may still achieve a small profit for the year.
Publication Name: The New York Times
Subject: Business, general
ISSN: 0362-4331
Year: 1996
User Contributions:
Comment about this article or add new information about this topic:
- Abstracts: Bell Atlantic to drop AT&T in video project. Disney and 3 Bells forming video venture. Three Baby Bells, Disney may link up to market and deliver video programs
- Abstracts: U.S. plans to act on global phone rates; FCC aims to reduce fees by offering waivers, setting price targets. Universal service: the fairy tale continues
- Abstracts: Apple Computer's pact with Pioneer marks first big vendor to clone Mac. Tight squeeze; Packard Bell is beset by new competition, customer complaints; home-PC pioneer borrowed under terms that put independence in doubt; market share is declining
- Abstracts: Apple Computer shifts course on its new operating system. Intuit gets 19 contracts for home-banking software
- Abstracts: I.B.M. expected to name head for new global on-line unit. I.B.M. promotes executive who may gain top post. House that Lou built reflects a new I.B.M