SBC/AT&T Expert Commentary (Part 2)

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Greg Galitzine

SBC/AT&T Expert Commentary (Part 2)

William A. Morgan is Managing Partner, W and J PARTNERSHIP.

Here are his thoughts on the SBC acquisition of AT&T.

The acquisition of AT&T by SBC means:
(1) SBC now has the means to compete at will, using today's technologies and minimal additional capital, in all ILEC territories, especially such as those of Verizon, BellSouth, and Qwest. If SBC were to choose to use IP Converged Networking with the AT&T backbone, many competitors' top accounts and areas would be instantly vulnerable.
(2) Sprint and MCI have just become instant targets of acquisition opportunity for Verizon, which must act fast or not at all.
(3) Qwest is now in play.
(4) The question is whether BellSouth is now, also, in play?
(5) Will Verizon sell off its non-13 Colonies' territories, such as the 5% of California residents it now serves?
(6) The CATV industry has an immediate voice-services wake up call. Ring. Ring.

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