Article Abstract:
AT&T and Cable & Wireless PLC (C&W) have temporarily ended all discussions of joining a partnership aimed at offering global telecommunications. AT&T had been interested in purchasing a large portion of Mercury Communications which is a division of C&W and has been a competitor of British Telecom. AT&T and C&W also planned to eventually collaborate on a business project that would exploit the growing international market in 25 to 30 countries that will offer expanding markets within the next five years. The negotiations may have stalled because AT&T wanted 51 percent or more of Mercury, which was too large a portion for C&W to give up. The political climate in Britain and the relationship AT&T has with British Telecom may also contribute to the end of the negotiations for the time being.
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Article Abstract:
AT and T is looking overseas in a plan to expand. Domestic growth is flat, so the company wants to increase overseas revenues 20 percent by the mid-1990s. Mexico, the Soviet Union, Eastern Bloc countries and China all present relatively open markets that fit with AT and T technology, and the company is pursuing opportunities in each. AT and T's management is studying ways to increase PBX profits as well as the idea of manufacturing its own facsimile equipment and microcomputers. Corporate reorganization is helping AT and T change from a self-absorbed concern to a competitive business. Management is also trying to determine if the company has too many employees and is looking into ways of rectifying the problem.
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Article Abstract:
AT and T is planning to expand its computer business and build an international distribution network in Western Europe by creating joint ventures during 1991 and 1992. No prospective partners have been named but AT and T indicated that they are following a country by country strategy and open to mergers, joint ventures and other forms of alliances. AT and T in 1990 receives 90 percent of its computer revenue from sales inside the United States and expects to receive half of its computer revenue outside the United States by 2000. Europe provided only five percent of AT and T's $2 billion a year world-wide computer revenue in 1990.
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