The deal with AT&T occurred when the CEO decided that AT&T wanted to get into the computer industry. The had designed the AT&T 6300/7300 series of personal computers. The Justice department wouldn't let AT&T in because they said that it would be a monoply. Anyway this 'pissing' contest was going on and AT&T was stonewalling the DOJ on some paperwork, and so the DOJ supeonas all this stuff, and AT&T sends up tons of paper for the DOJ to sift through. The judge gets 'pissed' and orders the breakup of AT&T and the Bell System. Actually that is just what the CEO wanted, so he could enter the computer business. He thought that since AT&T had all of this expertise that the orders would 'just roll in' without having to go and 'hustle'. Well, it didn't work that way, and the AT&T computer sustems went 'bust', but the telephone system was busted up! If you watch now, you see the Bell's trying to get 'back together' and AT&T is out trying to 'buy' operating companies. Of course Lucent (the AT&T Labs) has been spun off, and I don't think that will be re-integrated.
As for buying the stock, I always think that the fundamentals of telecommunication will in the long term be good, at least until boppin' Bill gets his low orbital satellite system in place. At some point in time, if the 'local loop' (lines to your house) is replaced by 'whatever', telephone equipment is the US of A will sell by the pound not by the functionality. Overseas will be a different deal, since the cost of the 'next step' IS A BIT SPENDY!
Does this help?
K.M. |
