Strikes raise key issues of how Bells can compete

Article Abstract:

Labor strikes, or the threat of strikes, pressure the Bell telephone companies's ability to compete in the rapidly evolving $200 billion telecommunications industry. Unions are attempting to stake out a new role with the Bells, which seek to extend their conventional local service to long-distance and Internet access. An example is Bell Atlantic, which settled a two-day strike in Aug 1998 by awarding data networking rights to the Communications Workers of America union. An array of Bell competitors, with the exception of AT&T, are saving money by employing nonunion workers. It remains to be seen whether labor costs will hamper the Bells in the long-term, or whether negotiating with a large union will limit the companies's mobility. Technological change, regulatory shifts and corporate takeovers probably will emerge as more defining issues, but labor negotiations will place additional pressure on Bell management.

Management, Human resource management, Forecasts and trends, Industry trend, Labor relations, Regional Bell Operating Companies

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AT&T's embrace of new technology signals next era

Article Abstract:

Frank Ianna, president of AT&T Corp.'s network unit, announces that his company plans to begin using new switching technology as the base of its network. The company plans to move from the technology of circuit switching to packet switching. The primary advantage of packet switching, in which a phone conversation can be broken up into small packets of data, is that it does not require an entire circuit to be in use for a single telephone conversation, making more efficient use of the available lines and lowering the costs for carriers. The type of technology AT&T and other carriers are looking towards is asynchronous transfer mode, as opposed to the Internet protocol. This is because the carriers are not sure that Internet protocol is reliable enough to handle the types of features customers want from their telephone service.

Telephone and telegraph apparatus, Telephone Apparatus Manufacturing, Services information, Data Communications Equip, Usage, Services, Equipment and supplies, Data communications equipment, Company services, Company technology development, Packet switching, Asynchronous communications, Asynchronous transfer mode

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AT&T profit surges 42% on cost cuts; but Wall St. is wary over huge cable deal

Article Abstract:

In addition to first quarter profits being up 42% over the same period of a year ago, AT&T's sales increased 6%. The U.S.'s largest communications company also announced its partnership with Nippon Telegraph and Telephone Corp., largest phone company in the world. Still in the works is AT&T's bid for cable TV company Mediaone Group Inc. that has many people puzzling over what would be best.

Comment:

Cost cutting made a big difference to the bottom line

Sales, profits & dividends, Finance, Abstract

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