Behind the scenes at the fall of Rolm: IBM took too long to get a fix on how bad things were

Article Abstract:

IBM has sold off half of its investment in Rolm Corp, after a four-year effort to use the company as an inroad into the communications industry. Rolm had suffered four annual losses in a row, since the acquisition. Its advanced PBX technology experienced several delays. The PBX market had changed from a technology -driven business to a cut-throat competition. In the wake of these realities, IBM sold Rolm's manufacturing and development operations to Siemens, AG, a German electronics giant. IBM will keep the remaining half of a new Rolm marketing company and share its management through an evenly split board. Siemens paid just over $1 billion for the company. IBM initially paid about $1 billion for Rolm, and invested at least another $1 billion into the enterprise. The Rolm failure represents another step backward for IBM in getting a position in the telecommunications market.

Communications Equipment, Mergers, acquisitions and divestments, International Business Machines Corp., IBM, Telecommunications equipment, Siemens AG, Divestiture, Divestment, Marketing Strategy, Telecommunications Industry, Acquisition, Financial Stability, Losses, Rolm Corp.

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Hands across the chipmaking chasm: The U.S. and Europe may join forces to loosen Japan's stranglehold

Article Abstract:

American and European computer industry officials are organizing a solid front against Japanese semiconductor supremacy. In the US, computer manufacturers have formed US Memories Inc, a consortium created solely to develop and produce DRAM chips. US Memories will work in conjunction with Sematech, a similar industry joint venture for semiconductor research. European companies have authorized funding for the Joint European Submicron Silicon program (Jessi). Funding for Jessi has been authorized for eight years at a cost of $4 billion. Some industry members are seeking a cooperative agreement between Sematech, US Memories and Jessi. However, the three organizations have not yet worked out a plan to keep Japanese companies from joining the venture.

Semiconductors and related devices, United States, Semiconductor industry, Europe, Japan, International competition (Economics), DRAM (Dynamic random access memory), DRAM, Competition, Joint Venture, Japanese Competition, Cooperative Agreements, Semiconductor Preparation, s, Joint European Submicron Silicon Project

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People aren't laughing at U.S. Sprint anymore

Article Abstract:

US Sprint Communications Co has just 8 percent of the $50-billion-a-year long-distance market, but is mounting an aggressive marketing campaign that may carry it past MCI Communications Corp to become the second-largest carrier behind AT&T. US Sprint's parent company, United Telecom, has 3 percent of the US local phone business, and when United Telecom's local phone companies are outfitted with the same fiber-optic lines used by Sprint, the local business could attain double-digit annual growth. Since GTE Corp sold all but 20 percent of its share in US Sprint to partner United Telecom in 1988, the value of US Sprint stock has more than doubled. US Sprint aims to double its 5 percent share of the international long-distance market by 1991.

Telephone communications, exc. radio, Management, Telephone companies, Sprint Corp., Company Profile, Telephone Company

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