The failures of AT&T strategies

Article Abstract:

In the light of AT&T's continuing struggles to acquire NCR Corp, many analysts ask if the telecommunications company has lost its way. Even as the trend in the high technology industries is away from the manufacturing of hardware products towards the offering of services, AT&T is willing to pay over $6 billion for a computer manufacturer. The company's own computer manufacturing division has failed to make any inroads into the market, and has actually posted huge losses as a consequence. AT&T divested the wrong businesses at the outset, selling off the Bell regional telephone companies and keeping the long distance and product manufacturing units. The Bell companies had a combined net income of $8.5 billion last year, while AT&T's was $2.7 billion. Some industry analysts believe AT&T should retract the bid for NCR, divest the product manufacturing units, and concentrate on proving quality international telecommunications services at a reasonable price.

Electronic computers, Computer peripheral equipment, not elsewhere classified, Computer industry, Mergers, acquisitions and divestments, NCR Corp., NCR, Divestiture, Divestment, Telecommunications, Strategic Planning, Acquisition, Takeovers

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A.T.&T. plan for added Europe cable

Article Abstract:

AT&T, which anticipates a considerable increase in telephone traffic between Europe and the United States, announces a plan to lay two cables across the Atlantic Ocean. The new cables will more than double the amount of trans-Atlantic telephone conversations that can be managed. In Nov 1991, 57,750 simultaneous conversations can be handled. By Feb 1992, it is expected that 80,000 more simultaneous calls will be possible. The two new cables will add yet another 160,000 possible calls, together with capacity for data and video, so that the total increase will be almost 300,000 calls. The new cables are intended mainly to reduce congestion for complex data transfers. With the new cables, more than 80 percent of AT&T's trans-Atlantic communications capabilities will have been planned or put in place before Aug 1993. All of AT&T's new installations will use high-capacity fiber-optic cabling.

Telephone and telegraph apparatus, United States, Europe, Telecommunications systems, Submarine cables, Telecommunication systems, Telephone systems, International communication, Telephone System, International Communications, Cables, Submarine

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