Europe's telecom monopolies transform; new rivals and technology spur fight for customers

Article Abstract:

Europe's Post Telephone & Telegraph Administrations (PTTs) face increased competition as regulatory protections disappear and market forces take hold. In the immediate future, the PTTs will continue to control domestic monopolies for basic phone services, which account for about three-quarters of their revenues, but European Community (EC) countries already allow outside companies to compete in sectors such as data transmission, leased lines, video conferencing and information services. Among the most aggressive outside competitors are British Telecommunications PLC (BT) and Cable and Wireless PLC, both headquartered in London. UK companies are more competitive and aggressive than EC companies because Britain, like the US, opened up its telephone markets in the mid-1980s. In Jun 1993, BT announced plans to invest $4.3 billion in MCI Communications Inc. A week earlier, AT&T had announced an Asian alliance and had said it was looking for partners in Europe. These companies' alliances aim to create worldwide communications services for multinational customers.

Telephone communications, exc. radio, Europe, Telecommunications services industry, Telecommunications industry, Telephone companies, International aspects, Telecommunications systems, European Union, International markets, International communication, Outlook, Competition, Telephone Company, International Communications, World Market, European Community

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DuPont and N.V. Philips are dissolving joint venture to produce optical disks

Article Abstract:

Du Pont and NV Philips dissolve a joint venture that was created in 1986 for the manufacture of optical disks. The decision to dissolve the joint venture, which is largely influenced by the less-than expected growth rate of the optical disk market, could further strengthen the Japanese companies' control over the market. The compact disk portion of the joint venture is transferred to Philips for an undisclosed sum and First Boston Corp has been hired to find a buyer for the other operations. The optical disk market was initially expected to reach $1 billion by 1990 but is more likely to be around $325 million. There is a lot of potential for the market to boom if erasable optical disks replace magnetic storage devices in microcomputers.

Computer storage devices, Joint ventures, Business planning, E.I. du Pont de Nemours and Co., Optical disks (Storage media), CD-ROM disks, Optical disk drives, Philips Gloeilampenfabrieken N.V., Computer storage device industry, Optical disks, Joint Venture, Optical Disk Drive, CD-ROM

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