Reaching out: AT&T, MCI, Sprint raise the intensity of their endless war; spending heavily, they try to set themselves apart through complex offers: friends, family and The Most

Article Abstract:

AT&T, Sprint Corp and MCI Communications Corp are competing more fiercely than ever for market share of the long-distance market, spending large amounts of money on advertising and marketing and offering a wide range of customer plans. In the $55 billion-a-year long-distance industry, the three giants together spent over $4 billion on marketing in 1992. Because of the competition, the companies' profits are not as high as they could have been, and the companies are keeping smaller firms out of competition. In order to distinguish among themselves, the companies have instituted customer plans, including AT&T's Reach Out America, MCI's Friends and Family and Sprint's The Most. Although the competition has generally resulted in lower prices for consumers, the companies have been raising their rates in order to make up for money spent on advertising.

Holding companies, not elsewhere classified, Companies, Strategic Planning, Marketing Strategy

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AT&T to reach out and touch clients more individually; 'The i Plan' for long distance for residential consumers seeks to rival Sprint, MCI

Article Abstract:

AT and T plans to fundamentally change the way it markets long-distance services to residential customers. Beginning Mar 3, 1993, the company's 'i Plan' will customize calling plans for individual customers. A bold move is needed by AT and T, which lost long-distance revenue in 4th qtr 1992. Arch-rivals MCI Communications Corp and Sprint Corp, in contrast, announced strong growth. MCI's 'Friends & Family' and Sprint's 'The Most' promotional programs have hurt AT and T. MCI advertising and communications VP Angela Dunlap scoffs at 'The i Plan,' saying it only applies to users who spend more than $30 in a month. Sprint executive Dave Schmeig says 'The i Plan' is a refurbished version of Sprint's two-year-old 'Priority' program. Still, both firms may be hard pressed to compete with AT and T's considerable marketing muscle.

Telecommunications systems, Home, Market Analysis, Promotion of Product

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AT&T's long-distance marketing blitz has MCI, Sprint scrambling to keep up

Article Abstract:

AT and T increases it marketing pressure and causes MCI Communications Corp's and US Sprint Communications Co's stocks to fall. AT and T vows that its market share in the long-distance telephone service market will not erode and has initiated a large telemarketing campaign to reinforce its strategy. AT and T testifies that it is placing around six million telemarketing calls to the competition's customers; MCI is making around seven million calls per month. Analysts believe AT and T's recent resolve will erode profits from MCI and US Sprint during 1991. MCI stock plunges 25 percent, United Telecom, parent of US Sprint, stock falls over two dollars a share and AT and T's stock falls over a dollar a share in Nov 1990.

Telephone companies, Telephone Company

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