The last mile; why is Bell Atlantic leading the cheers for new local rival? Upstart provides one thing all the Baby Bells need to expand: competition; 'a good idea to switch'
Article Abstract:
Local telephone service provider Bell Atlantic Corp. has competition in Kingston, Pennsylvania where Commonwealth Telephone Enterprises is providing local services at a lower cost than Bell Atlantic and is connecting its customers to its fiber-optic network with copper wire. Yet Bell Atlantic is pleased. Real competition in the phone markets Bell Atlantic serves will allow removal of a regulatory barrier to its entry into the long-distance market. Commonwealth Telephone's business model is one which has been derided as unrealistic, since the copper wire networks owned by Bell Atlantic and other Baby Bells confer a competitive advantage. Most entrants into local phone competition have done so by renting from the Baby Bells access to the copper wire lines connecting phones to networks. The rental charges make it hard for new companies to compete on price. By investing in its own copper lines, Commonwealth Telephone is carving out a small market niche for itself. By standing by, Bell Atlantic will sooner be able to offer long-distance to the customers it serves locally. It is uncertain whether Commonwealth Telephone will succeed in its plan. The investment in copper wire is cutting into its profits and Bell Atlantic could offer services at lower prices.
Publication Name: The Wall Street Journal Western Edition
Subject: Business, general
ISSN: 0193-2241
Year: 1999
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MCI WorldCom sets lower charge for R&D costs
Article Abstract:
MCI WorldCom Inc has announced it will take only a $3.1 billion charge against earnings for purchased R&D, reflecting stricter SEC guidelines. MCI WorldCom had earlier estimated $6 billion to $7 billion for in-process purchased R&D costs connected to the $37 bil merger of MCI Communications Corp and WorldCom Inc. The Jackson, Mississippi-based company also announced $26 billion in goodwill charges associated with the Sep 1998 merger, to be amortized over 40 years at a rate of $650 million per year.
Comment:
Announces a smaller-than-expected $3.1 bil charge for R&D costs, reflecting new SEC guidelines
Publication Name: The Wall Street Journal Western Edition
Subject: Business, general
ISSN: 0193-2241
Year: 1998
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