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To: Steve Fancy who wrote (10274)	6/30/1999 12:03:00 PM
From: Hawaii60	Read Replies (1) \| Respond to of 30916

Here is the article that is causing the problem for WCOM, T and FON today: Wednesday June 30, 6:55 am Eastern Time U.S. Justice Dept in sub-sea cable probe - WSJ NEW YORK, June 30 (Reuters) - The U.S. Justice Department has launched an antitrust investigation of the undersea cable business that involves some of the world's biggest telecommunications companies, the Wall Street Journal reported on Wednesday. A department spokeswoman confirmed that antitrust enforcers are ''looking at the possibility of anti-competitive practices in the international undersea cable industry.'' She declined to elaborate, according to the paper. If enforcers find that these telephone companies have violated antitrust laws, the probe could lead to significant changes in the way that the companies sell voice and data-transmission services around the world, the paper said. It couldn't be determined which companies had been notified of the Justice Department's investigation. A spokesman for Sprint Corp. (NYSE:FON - news) said the company received an 18-page ''civil investigative demand'' from the department concerning practices of a consortium that is building a $1.2 billion undersea cable between the U.S. and Japan; he wouldn't elaborate, the Journal reported. A spokesman for Level 3 Communications Inc. (Nasdaq:LVLT - news), another member of the trans-Pacific consortium that has built these cables, said that company also had received the letter, which is a formal demand for information relating to a department investigation. The spokesman wouldn't comment further. Other members of the trans-Pacific consortium include AT&T (NYSE:T - news), MCI WorldCom (Nasdaq:WCOM - news), and three of Japan's biggest telephone companies, the paper said. A spokesman for AT&T declined to comment, and an MCI spokeswoman said she had no information late Tuesday. The Japanese companies c

To: Steve Fancy who wrote (10274)	6/30/1999 12:08:00 PM
From: Arrow Hd.	Read Replies (1) \| Respond to of 30916

I believe the Morgan Stanley analyst who covers the Telco's pulled the plug due to pricing issues. I have not reviewed his report yet but I suspect it is over the price war issues and the potential for price attrition to core businesses. Morgan Stanley obviously has some good analysts and carries a lot of weight in the markets but they are not infallible. The guy covering IBM in March offered that there was a 30% chance of a pre-warn when, in fact, IBM blew out the numbers like never before. It was a truly pathetic call.