Telecom titans team to take on AT&T

 

latest developments

In a deal worth more than the gross national product of Norway, MCI WorldCom and Sprint shake hands to take on long distance giant AT&T. BellSouth, meanwhile, looks for other long distance options. "Each of us had a chance to go it alone, but together we will be more effective." - Sprint chief executive William Esrey

Merger pits WorldCom against AT&T With today's merger, the stage is set for a titanic struggle for consumer and business communications customers--with WorldCom's Ebbers in one corner and AT&T's C. Michael Armstrong in the other. BellSouth left without a partner, for now Although BellSouth lost in the bidding war for Sprint, it may be in a good position to take advantage of other deals in the rapidly consolidating industry--but it needs to act fast. MCI WorldCom buys Sprint for $129 billion update The No. 2 long distance carrier will buy its No. 3 rival for $129 billion, creating a global communications behemoth poised to take on AT&T. FCC says telecom merger anticompetitive The FCC chairman criticizes MCI WorldCom's proposed purchase of Sprint as a "surrender" of competition that imposes a heavy burden on the firms to show the deal is good for consumers. Previous coverage No roadblocks for rumored MCI-Sprint deal, CEO says William Esrey, speaking "hypothetically," says a possible merger between Sprint and MCI WorldCom would likely face few regulatory and antitrust concerns. Telecom players make competing bids for Sprint Sprint's board of directors plans to weigh competing bids from MCI WorldCom and BellSouth, but Deutsche Telekom also may be working on its own bid, according to reports. FCC stands tough on long distance competition Chairman William Kennard says any mergers would have to maintain the current climate of competition and falling prices for consumers, in light of a rumored MCI WorldCom-Sprint pairing.