BT, AT&T in Concert on services venture
By Reuters
Special to CNET News.com
September 30, 1999, 6:45 a.m. PT
LONDON--British Telecommunications said today that its new global venture with U.S. partner AT&T would be named Concert--after the multinational corporate services business already owned by BT.
"The name emerged as the most popular choice among business customers, who felt it effectively represented the company's intended image and operation," BT said in a statement.
BT's last attempt to form a joint venture called Concert ended in bitter disharmony after former U.S. partner MCI Communications deserted the British company and agreed to a higher takeover bid from U.S. carrier WorldCom.
But BT bought out MCI's 25 percent stake in Concert and ran the business alone until it secured a joint deal with AT&T in July 1998, this time without a takeover attempt. Then it agreed to wrap Concert into a 50/50 global operation.
AT&T and BT's logos will remain next to a new Concert logo. It will be launched under the tagline "global communications simplified to the nth degree."
AT&T and BT are still awaiting final U.S. regulatory approval for their planned joint venture. A BT spokesman said it was expected "fairly soon." He gave no further details.
The new company, which is forecast to have sales of $10 billion and generate profits of $1 billion by 2000, will meet the complete global communications needs of multinational companies, carriers, and Internet service providers.
When launched, it will include BT and AT&T's transborder assets and operations, existing international networks, international traffic, their international products for business customers, carriers, and Internet service providers. It will also include multinational accounts in selected industry sectors. |
