Baby Bells see threat, new leverage in AT&T's bid to enter local markets

Article Abstract:

Several of the Baby Bells say AT&T's acquisition of Teleport could allow the long-distance telephone giant to bypass Bell-dominated local networks. AT&T acquired Teleport, which provides local services to business users in major markets, for about $11.3 billion in stock in early Jan 1998. BellSouth announced formal protest plans, because it said the combined AT&T-Teleport company could provide both local and long-distance services to BellSouth customers. Bell Atlantic and SBC Communications, two powerful Bells, said Teleport and other alternative providers widen local telephone competition. Teleport has accumulated about 250,000 customer access lines since offering local service in the mid-1980s. By comparison, the Bells dominate the access market with a total of 130 million access lines, according to research firm Decision Resources.

Planning, Mergers, acquisitions and divestments, Telecommunications services industry, Telecommunications industry, Economic policy, Long distance telephone services, AT&T Inc., Bell Atlantic Corp., BellSouth Corp., BEL, BLS, SBC, Local telephone services, Long-distance telephone service, Company business planning, Local telephone service, Teleport Communications Group Inc., TCGI

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AT & T begins slicing computer unit, plans $1.2 billion third-quarter charge; as many as 10,000 workers, over 20% of GIS staff, are facing dismissal

Article Abstract:

AT and T is restructuring its Global Information Solutions (GIS) unit to prevent the division's poor financial performance from further impacting the company's balance sheet. Specifically, the company will cut 10,000 jobs and take a $1.2 billion charge to pay for the massive layoffs. GIS, formerly known as the NCR Corp, was acquired by AT and T in 1990 for $7.4 billion but the acquisition continues to lose money. The restructuring further blemishes the company's dismal attempts to enter the highly-competitive PC market. The restructured GIS is expected to de-emphasize computer and software development and re-enter NCR's former business that provides banks and retailers with business equipment. Analysts predict the company may sell portions of GIS to rival computer companies in Europe.

Electronic computers, Microcomputers, Management, Computer industry, Reorganization and restructuring, Layoffs, Layoff, AT&T Global Information Solutions, Company Operations, Company Restructuring/Company Reorganization

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