BBN/GTE
<With all due respect you're missing alot.>
Thanks for playing Bob <g>.
You paint an interesting picture. One that has me poised to possibly re-enter today. But let's consider your axioms:
<GTE has conducted successful ADSL trials with AMTX/WSTL --FACT>
I think the "successful" adjective is conjecture until we see dollar contracts.
<GTE said to "roll-out" national internet network for voice,video, and data -- FACT>
This is, of course, a completely new (and exciting) network. What makes you sure (in your syllogism) that it pertains to any previous trials?
<GTE has said todays announcment (Interop) is very,very positive for AMTX. --FACT>
It might well be, but I never read that from GTE. Did you?
I guess what we accept as fact could be a difference in our relative levels of exuberance.
Fwiw, the following are more details of the BBN/GTE deal:
businesswire.com
( BW)(GTE)(GTE) GTE Announces Initiatives to Become a Leading
National Provider of Telecommunications Services
Business Editors
STAMFORD, Conn.--(BUSINESS WIRE)--May 6, 1997--
-- Will Acquire BBN In Transaction Valued At $616 Million --
-- Purchases Fiber-Optic Network From Qwest --
-- Creates A New National Sales, Service and Marketing Company --
GTE today announced a series of steps to position itself as a
market-leading, national provider of integrated telecommunications
services, according to GTE Chairman and Chief Executive Officer
Charles R. Lee, including a comprehensive plan to enter the $100
billion market for value-added data communications services -- the
fastest-growing segment of the telecommunications industry.
The actions include the acquisition of BBN Corporation, a leading
provider of end-to-end Internet solutions; a strategic alliance with
Cisco Systems, Inc. to jointly develop enhanced data and Internet
services for customers; and, the purchase of a national,
state-of-the-art fiber-optic network from Qwest Communications. Also
included is the creation of a new, deregulated unit to market
integrated voice, video and data solutions both within and outside
GTE's current markets.
"The actions announced today clearly position GTE to have the
fastest, most reliable and most secure national network available,
enabling end-to-end managed network solutions that we believe will be
unmatched in the industry," said Lee.
In detailing its data plan, GTE said the moves announced today
will enable it to:
- Develop innovative and value-added communications services to
meet customer needs, especially in the fast-growing Internet-services
market;
- Create a broadband, national backbone network based on SONET
self-healing fiber rings; and
- Rapidly deploy "next generation" value-added services and
Internet Protocol offerings.
"Simply put, GTE will become a leading national 'one-stop'
provider of local, long distance, Internet and wireless services, and
will establish an advanced data network that will be fully
operational next year," said GTE President Kent B. Foster. "At
that point, we will be in a position to reach virtually the entire
U.S. population."
GTE/BBN
Under the terms of the transaction, which was approved by the
Boards of Directors of both companies, GTE will shortly commence a
cash tender offer to acquire all the outstanding shares of BBN common
stock at a price of $29 per share. Based on the number of shares of
BBN stock currently outstanding, the equity portion of the
transaction is valued at approximately $616 million. As soon as
practicable following the conclusion of the tender offer, GTE will
initiate a merger through which any remaining shares of BBN not owned
by GTE will be converted into cash at the cash tender offer price in
the merger.
Cambridge, Mass.-based BBN is a leading provider of high
performance end-to-end Internet solutions such as World Wide Web site
hosting, network security, consulting, systems integration, and
dedicated and dial-up Internet access for government and commercial
customers. Its 2,200 employees have extensive experience in
leading-edge Internet and other telecommunications applications.
Twenty-eight years ago, BBN created ARPANET, the forerunner of the
Internet.
"GTE will jump-start its entry into the enhanced Internet
services market for large businesses through the acquisition of BBN,"
said Foster.
George H. Conrades, chairman and chief executive officer of BBN
said, "This business combination is a perfect strategic fit. The
Internet opportunity, characterized by the convergence of computers
and communications, is the fastest-growing economic endeavor in human
history. GTE is today declaring its strategic intent to be a leading
player in this important opportunity, backed up by plans for
significant investment and alliances. BBN has been chosen to be the
cornerstone of GTE's new strategy. We bring needed Internet skills,
a suite of offerings and a business customer base.
"At the same time, we will be able to take advantage of GTE's
strong brand image, distribution, network expansion plans and
financial resources. Today, no one player in this industry has all
the piece parts necessary for customer and competitive success. It's
a game of scale and financial resources, as well as specialization
and innovation. With this announcement, GTE, with BBN, is off to a
great start," Conrades said.
GTE/Cisco
GTE and Cisco announce their intention to jointly develop
enhanced internetworking capabilities to power GTE's network. Beyond
the network infrastructure, the companies have committed to deliver
targeted, turn-key, bundled solutions of applications, equipment
installation, maintenance and telecommunication services.
"Cisco is the leading provider of Internet-related networking
services. Its skill sets perfectly complement those of GTE, and we
are pleased to enter into this long-term, mutually beneficial
strategic relationship," said GTE's Foster.
"This combination will create a fundamentally new offering in the
marketplace," said John Chambers, president and chief executive
officer at Cisco Systems, Inc. "GTE will have leadership
capabilities to provide integrated end-to-end services across all
layers of the network such as multimedia, quality and security. The
relationship will accelerate the deployment of these and other
services through the alignment of our core competencies."
GTE/Qwest
Denver-based Qwest Communications Corp. is constructing a
fiber-based national backbone network which will be equipped with
state-of-the-art opto-electronics. The network will span 13,000
miles, connecting 92 metropolitan areas, including Atlanta, Chicago,
Los Angeles, New York, San Francisco and Washington, D.C. In an
agreement announced Monday, GTE will acquire 24 dark fibers, and
certain associated facilities, in the new Qwest network.
"When completed in 1998, the network will provide the foundation
for a myriad of high-speed data communication services. GTE's
network will greatly reduce the high upfront cost of today's private
data networks, making advanced data communications more affordable
for a greater segment of the population," Foster stated.
"We are extremely pleased with GTE's acquisition of dark fiber on
the Qwest network route," said Joe Nacchio, president and chief
executive officer of Qwest.
GTE Restructures Telephone Operations,
Creates New National Sales, Service and Marketing Company
As part of the company's plan to capture new growth, GTE
restructured its Telephone Operations unit, Foster said.
To move with greater flexibility to capture growth opportunities
in the telecommunications marketplace, GTE created an unregulated
sales, service and marketing unit to offer an integrated package of
local, long distance, Internet and wireless services nationwide,
regardless of GTE's traditional market boundaries.
This new unit will operate as a competitive local exchange
carrier (CLEC), offering targeted customers premium servicing
capabilities and packaged products beyond what is currently available
in the marketplace today.
Foster also announced the following realignment of key
responsibilities: Thomas W. White, 51, has been named corporate
executive vice president-market operations, reporting to Foster. He
will assist the GTE president in coordinating the activities of the
below-mentioned business units and also will be responsible for
leading the company's overall data thrust. White has served as
president of GTE Telephone Operations since July 1995.
Also reporting to Foster are the following newly appointed
individuals:
- Lew Wilks, 43, has been named president of GTE's new national
sales, service and marketing unit. This new retail business unit
will offer a bundled package of premium telecommunications services
to business and residential customers both within and outside GTE's
current franchise areas. Wilks previously served as president,
business markets, since July, 1996.
- John Appel, 48, has been named president of GTE's current
regulated local exchange operations. Appel will continue work
already underway to enhance quality and customer service and to
preserve and grow GTE's current in-franchise, regulated business.
Appel was appointed to his previous position, executive vice
president-Network Operations, in January 1996.
- Jerry Dinsmore, 47, has been named president - Business
Development and Integration, responsible for coordination and
integration of all marketing, technology, finance, planning and
business analysis, and regulatory for the above units. Dinsmore's
principal responsibility will be to lead an integrated approach to
the marketplace.
Now that these individuals have been named, they will begin to
develop transition plans for their respective businesses and assume
their new positions on June 1.
GTE's Wireless, Directories and Airfone units will continue to
report directly to GTE President Kent Foster.
"The organizations and people now in place will drive our growth
in the marketplace in a powerful way," said Foster. Background on
BBN
BBN is one of the nation's leading providers of Internet access
and value-added services for businesses, with annualized revenue of
more than $380 million for BBN's third quarter, announced today. It
offers Fortune 1000 companies a complete set of managed Internet
services, including high-speed and dial-up access, systems
development and electronic-commerce support, network security, and
Web hosting services. BBN also provides network-related contract
research and development for government and commercial customers.
BBN's Internet customers include many of the world's top information
technology, manufacturing and financial services companies. BBN's
home page address is bbn.com.
Background on GTE
With revenues of more than $21 billion in 1996, GTE is one of the
largest publicly held telecommunications companies in the world. In
the United States, GTE offers local and wireless service in 29 states
and long-distance service in all 50 states. GTE was the first among
its peers to offer "one-stop shopping" for local, long-distance and
Internet access services. Outside the United States, where GTE has
operated for more than 40 years, the company serves over 6.5 million
customers. GTE is also a leader in government and defense
communications systems and equipment, directories and
telecommunications-based information services, and aircraft-passenger
telecommunications.
Additional information about GTE can be found on the Internet at
gte.com. |
