Alcatel to be reorganized along product lines

Article Abstract:

Alcatel Alsthom plans a reorganization that will allow the company to standardize its products and reduce costs. Alcatel manufactures wireless communications devices, network switches and fiber optic lines. Alcatel's customers have traditionally been government-owned monopolies, and the company has created a full line of products for each. The company's business model reflects the same focus, with divisions assigned to each country. Each division typically operates independently, not communicating with other divisions and increasing costs. The reorganization will restructure Alcatel around product lines. The change is forced by the privatization of telecommunications companies, leading to 20% to 25% decreases in Alcatel's prices. Alcatal lost $250 million in the first half of 1995 and total losses for the year may reach $5 billion. As many as 30,000 people may lose their jobs. Alcatel will not show profits until 1998.

Management, Compagnie Financiere Alcatel, Reorganization and restructuring, Company Operations, Company Restructuring/Company Reorganization

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Year of intense activity looms for phone industry, experts say

Article Abstract:

Experts predict that the changes in telecommunications regulations and the mergers that marked 1996 will lead to more mergers and more competition in the telecommunications industry during 1997. The nature of that competition is still uncertain, however, despite the deregulation instigated by the Telecommunications Act of 1996. Long-distance and local telephone service providers are appealing recent regulations and are expected to quarrel over upcoming regulation of universal service subsidies. State governments may join the battle over subsidies if the FCC rules that the states must collect the subsidies supporting universal service. As long-distance and local service markets commingle, carriers will continue to merge. While competition for business customers is rigorous, industry analysts are uncertain about whether residential customers will see lower rates.

Laws, regulations and rules, Forecasts and trends, Marketing, United States. Federal Communications Commission, Market Trend/Market Analysis

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A British company weighs buying MCI in $22 billion deal; talks at advanced stage; British Telecom already owns 20% of the stock - US approval is required

Article Abstract:

Negotiations are in the final stages between British Telecommunications PLC (BT)and MCI in a deal worth $22 billion in which BT would take over MCI. Boards of both companies vote Nov 2, 1996, with approval from both needed. The US government must also assent to the merger, which would create a colossal company with 42 million customers, 182,000 employees and $38 billion in annual sales. The deal could avail MCI of substantial financial resources for the anticipated round of rapid expansion expected to follow the telecommunications deregulation act. BT already claims a 20% stake in MCI, and is offering about $36 per share for the remaining 80%. FCC officials say they will ensure that the reciprocity agreements are in place regarding the British telecom market before permitting the transaction.

Mergers, acquisitions and divestments, Company acquisition/merger, British Telecommunications PLC, MCI Communications Corp., MCIC

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