Can U.S. companies even get a bonjour? France and Germany pose big challenges to competition in telecommunications

Article Abstract:

France Telecom and Deutsche Telekom face the difficult task of allowing American competition into their monopolies. The European telecommunication industry is schedules to be deregulated in 1998, but the $25 billion French and the $40 billion German companies provide a constant stream of revenue for their government owners. They fear that American companies will bring marketing techniques learned from fierce competition in the US market and potentially more powerful technology. The US has always asked that the European countries deregulate, but the FCC has made it clear that it will not approve a proposed $4.2 billion deal in which France Telecom and Deutsche Telekom would buy a 20% stake in Sprint, unless France and Germany open their telecommunications markets. The telecommunications companies anticipate an open market in which companies could provide worldwide communications services.

Laws, regulations and rules, Forecasts and trends, Industry trend, International trade, Deutsche Telekom AG, France Telecom S.A., Industry Trend Or Event

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AT&T warns of a drop in earnings and its stock plunges

Article Abstract:

AT&T warns its profits will fall below forecasts for the third and fourth quarters of 1996, sending the company's stock into a decline that takes 9.8% off AT&T's market value. AT&T attributes the lower earnings in part to losing customers to competitors in the long-distance market and to investments in new local telephone, wireless and Internet access services. For 3rd qtr 1996, profits may be 10% below the 92 cents predicted by analysts, and for 4th qtr 1996, profits may be 10% below the predicted 89 cents a share. AT&T Chmn Robert E. Allen broke the news to analysts, but he claims that AT&T will be successful as it begins to compete in the local telephone business, where the company expects to take a third of the $100 billion market from the local carriers. To compete in the long-distance market, AT&T introduces a 15 cents per minute flat rate for all calls in the US.

Management, Company earnings/profit, Allen, Robert E.

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AT&T computer unit loss jumps by another $1 billion

Article Abstract:

NCR Corp is costing AT&T Corp $1 billion more than analysts expected. AT&T has spent $2.8 billion in cash on its venture into the computer industry, and plans to spend another $487 million before it spins off the subsidiary at the end of 1996. NCR Chmn and CEO Lars Nyberg has begun to turn the company around, lowering its net loss for the first half of 1996 to $83 million, compared with $389 million in last year's same period. The company's revenues dropped to $3.27 billion for the period, compared with $3.86 billion last year. AT&T will provide a cash infusion of $419 million in Oct-Nov 1996 and plans to contribute another $68 million to retire NCR's debt. AT&T is warning investors that its profits will be as much as 10% below projections for the rest of 1996. The decline is blamed on high costs and a deterioration of its residential telephone business.

Company losses, NCR Corp., NCR

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