Staid phone giants try marriage to Hollywood

Article Abstract:

Large telephone companies such as MCI and US West Inc have invested millions in alliances with media companies to provide content for their developing interactive services, but critics warn that these investments are extremely risky. MCI's recent investment of $2 billion in media company News Corp is the latest example of the telephone provider-media company alliance trend. Other alliances include three Baby Bell companies with Walt Disney Co, Baby Bell US West Inc's 25.5% ownership in Time Warner and three others with Hollywood insider Michael Ovitz. The alliances have been sparked by the telephone companies' fear that they will be locked out of a potentially huge market. They believe that the interactive telephone services that they are constructing will not deliver profitable margins. Critics warn that telephone companies do not have the management culture to handle the free-wheeling management style of the media industry, which could result in massive losses.

Management, Joint ventures, Time Warner Inc., T, U S WEST Inc., USW, TWX, Walt Disney Co., The News Corporation Ltd., DIS, Company joint venture, American Telephone and Telegraph Co., Interactive media, Interactive technology, MCI Communications Corp., MCIC

---

Out of the loop: What ever happened to competition for local phone service? It's simple economics

Article Abstract:

The Telecommunications Act of 1996 has so far failed to bring competition to the market for local communications, and local telephone companies' control of the 'local loop' is cited as a reason. The telecom act requires Bell companies to lease their lines to others, and in fact, the Bells typically give other companies discounts of 17% to 25%, compared with rates charged to consumers. However, this is usually not enough to leave room for a profit. Nor have efforts to bypass the Bells' last-mile controls yielded significant results. Cable TV and wireless arrangements have so far proved disappointing, and it will probably be many years before they become viable alternatives. Some industry observers are advocating a radical solution. They say the local loop should be regarded as a natural monopoly. They say separate companies should be formed to own and operate these lines, renting access to everyone.

Analysis, Telecommunications regulations, Local telephone services, Government communications regulation, Local telephone service

---

A giant stirs; IBM is ready to do battle. Should anybody worry?

Article Abstract:

IBM is preparing to take on AT&T and other telecommunications giants with its Intelligent Communications service. The service will include a software-based system that collects and automatically prioritizes users' voice mail, e-mail, faxes and on-line data. Users will be able to access the data via a desktop PC, portable PC, telephone or PDA. Although some analysts are skeptical about IBM's ability to pull off such an endeavor, IBM is confident that its decades of experience with complex communications systems will enable it to succeed. Some IBM officials admit that the company needs to face a number of obstacles before the service will become a reality. It must convince consumers that it is the right company to be offering such a service, and it must form a number of agreements with software companies to be able to provide links to their products.

Product development, Services, International Business Machines Corp., Telecommunications equipment, Company services

Similar abstracts:

• Abstracts: AT& T's big chance to open the door. Time Warner joins forces with AT&T; local telephone service using cable TV lines
• Abstracts: U.S. plans more phone competition. MCI will compete in local phone services. Congress votes to reshape communicates industry, ending a 4-year struggle; sweeping impact; Clinton set to sign bill that is expected spur competition
• Abstracts: Federal agents arrest six hackers in cyberspace sting. AT&T's heir apparent jumps to a tiny firm that offers huge pay; Mandl faced a long wait for top job, saw others who left get rich fast; A $20 million signing bonus
• Abstracts: The urge to merge; the cellular industry, facing competition from PCS, is in the midst of a major shake-up. PriCelullar agrees to be purchased by American Cellular for $811 million

This website is not affiliated with document authors or copyright owners. This page is provided for informational purposes only. Unintentional errors are possible.