AT&T, British Telecommunications to unveil managers of joint venture
Article Abstract:
AT&T Corp. and British Telecommunications PLC are expected to announce the management group that will lead their $10 billion global telephone joint venture, in hopes of gaining a head start on the likely competition. The two firms are committed to getting the venture off the ground as soon as possible to take full advantage of the growth opportunities as telecommunications markets open around the world and their competitors falter. It is expected that the phone giants will unveil a number of investments, especially in Latin America and Asia, to extend the reach of the venture. The firms have already announced they will buy a 30% equity stake in Japan Telecom, the nation's third-biggest long-distance firm. The uncertainty surrounding Global One, the joint venture of Sprint Corp., Deutsche Telecom and France Telecom, makes the time ripe for AT&T and BT's joint venture to establish its presence. The firms know that the greatest growth in the telecommunications market will come from outside the U.S. and United Kingdom, whose markets are already mature. Still, analysts question whether the two former monopolies will be able to act quickly enough to take advantage of these opportunities. The venture was launched last summer after the failed merger of BT and the former MCI Communications Corp.
Publication Name: The Wall Street Journal Western Edition
Subject: Business, general
ISSN: 0193-2241
Year: 1999
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AT&T freezes new hiring; layoffs may follow
Article Abstract:
AT&T Corp. has instituted a freeze on hiring and will reduce its work force, probably through layoffs, as part of its goal to meet 1999 earnings targets and its aggressive cost-cutting goals. The company wants to cut another $2 billion in costs by the end of 2000, targets announced when it launched its $54-billion bid for cable operator MediaOne Group Inc. These cuts are in addition to $1.6 billion in cost reductions made since Chairman C. Michael Armstrong took over in November 1997. Mr. Armstrong instituted a hiring freeze across the company on August 19. He has also told executives to reduce spending in areas like travel whenever possible. Several thousand employees could be affected by the job cuts, either being reassigned or laid off.
Publication Name: The Wall Street Journal Western Edition
Subject: Business, general
ISSN: 0193-2241
Year: 1999
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Comment about this article or add new information about this topic:
- Abstracts: Telecommunications equipment industry. Telecommunications services industry
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