MCI's loss creates a very bad trans-Atlantic connection

Article Abstract:

MCI Communications may have caused serious problems between itself and British Telecommunications (BT) by not informing its partner of how large the company's losses would be in 1997. MCI's announcement included the information that its long-distance customer base had diminished and that it was costing far more than the company had expected to break into the local-service industry. The company has warned analysts that it expects to fall short by 10% of its long-distance operating income expectations for the second part of 1997 and all of 1998. MCI blames its long-distance losses on small competitors that are leasing lines from other carriers and reselling services at very low rates. Because any modifying of the deal between MCI and BT would have to be resubmitted to the Justice Dept, it is unlikely that the merger will be affected.

Finance, Company sales and earnings, Company losses, Local telephone services, Local telephone service

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Buying MCI just one step in British Executive's Plan; Chief says BT must be more than a utility

Article Abstract:

British Telecommunications CEO Sir Peter Bonfield is attempting to expand the company's holdings in Europe and Asia by obtaining licenses and partners. Europe will be undergoing deregulation beginning on Jan 1, 1998. This has prompted Bonfield to seek agreements with countries such as Sweden, Germany and the Netherlands. BT is interested in expanding its interests in Asia. Bonfield has expressed his desired to become more involved with Nippon Telegraph and Telephone (NTT) of Japan, and with companies in Singapore, Korea and China. He explained that his goal is to establish partners in a minimum of six large countries. Bonfield expects the regulatory authorities in the US and Britain to give their approval to the MCI, BT merger in the fall of 1997.

Planning, Company business planning

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AT&T seeks global reach and partners; two other alliances consolidate their ties

Article Abstract:

AT&T's affiliation of overseas allies, Unisource, has lost another member to the MCI-BT group, which can provide a tighter bond for its affiliates. The defection of Latin America's largest communications provider, Telefonica de Espana, underscored the problems AT&T is having with the loosely knit strategy it has embraced to compete against the international partnership of MCI and BT, known as Concert. One of the reasons that Concert has been more successful than AT&T is the commitment its had to expansion and new investments. Winning Telefonica away from AT&T is considered to be a major coup for Concert, as the market in Latin America for telecommunications services is expected to double by the year 2000 and reach $60 billion dollars.

Forecasts and trends, Industry trend, AT&T Corp., T, International aspects, Long distance telephone services, Communications industry, Long-distance telephone service

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