MCI and Sprint unveil deep discounts, new services in fresh fight with AT&T

Article Abstract:

MCI and Sprint are planning new services and discount plans in order to compete with AT&T's new aggressive competition in the long distance market. Sprint will introduce a new plan called Sprint Sense that will reduce calling rates by 19% during the day and 29% at night, and will rely on a new flat 10 cents-per-minute rate between 7 p.m. and 7 a.m. for calls anywhere in the US MCI is updating its popular Friends & Family plan with a paging service, reduced rates for calling cards and electronic mail; it will also offer discounts as high as 50% on long-distance calls. AT&T's True Savings plan has been very successful and has won more than one million subscribers. AT&T's success has led both MCI and Sprint to expect to have lackluster financial results for 4th qtr 1994. MCI has been particularly hurt by AT&T's marketing strategy because of a heavy advertising campaign that questioned the truth of MCI's discount plans.

Telecommunications, Telephone Communication, Marketing, Financial analysis, American Telephone and Telegraph Co., Marketing Strategy, Discount

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Phone earnings likely to be off for 1st quarter; as long-distance firms bet on new services, cost are advancing

Article Abstract:

Telecommunications giants are investing heavily in new wireless and local phone services, and thus are expected to post low earnings for 1st qtr 1997. AT&T, Sprint, MCI and Worldcom are all feeling the pinch of lowered growth rates combined with increasing costs of development and infrastructure. AT&T's profits are expected to drop 22% compared to 1st qtr 1996 levels and earnings growth is not expected until 1999. Sprint is investing in digital wireless service infrastructure, and thus will be reporting a 19% drop in earnings. MCI will announce earnings of 42 cents a share, even with 1st qtr 1996 reports. MCI has an impending merger with British Telecommunications (BT). Worldcom's earnings will plunge 90%, but its revenue may grow by as much as 30%, leaving its earnings at just slightly below 1st qtr 1996 levels. Worldcom is also absorbing the costs of its acquisition of MFS Communications in 1996.

Communications Equipment, Telecommunications Equipment, Communications Equipment Manufacturing, Forecasts and trends, Industry trend, AT&T Corp., Telecommunications systems, WCOM, FON, MCI Inc., MCIC, Telecommunications Industry

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