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To: zbyslaw owczarczyk who wrote (13641)	10/13/1999 6:31:00 PM
From: zbyslaw owczarczyk	Read Replies (1) \| Respond to of 18016

Combined Bell Atlantic/GTE Could Be Merger Target Bell Atlantic, GTE officials cagey on euro merger possibilities John Blau, tele.com Bell Atlantic and GTE executives today didn't deny rumors circulating at Telecom 99 that their companies might be acquisition targets for a large European carrier in the near future. The two companies are waiting for U.S. government approval on their merger. When asked during a press conference this morning, about the possibility of a combined GTE/Bell Atlantic being acquired by a large European carrier, company executives were cagey in their responses. "I wouldn't rule out anything in this crazy world we live in at the moment," said James Attwood, executive vice president of strategic development and planning at GTE Corp. (Irving, Texas). GTE and Bell Atlantic are set to combine their operations as soon as the Federal Communications Commission issues its decision on the union. The companies expect an approval within the next 80 days, Atwood said. The two companies announced their merger plans in July, 1998. Rumors of a united Bell Atlantic/GTE becoming part of a European carrier are the result of yet another merger-MCI WorldCom's planned acquisition of Sprint. That acquisition has destabilized the Global One alliance, leaving room for another member. France Telecom S.A. (Paris) and Deutsche Telekom AG (Bonn) have both said they are looking for strategic investments to fill a gap that will probably be created when Sprint Corp., the third partner in Global One, is consumed by MCI.. All this talk of mergers has Bell Atlantic and GTE officials talking boldly, even provocatively, about future mergers. "Once we merge, we will have a formidable presence in the United States," GTE's Attwood said. "We will certainly look very attractive to anyone who wants to gain a footprint in the U.S. market for fixed, wireless and Internet services." The two companies aren't waiting to be acquired, however. In fact, they may be making some of their own acquisitions, once their merger is approved, officials said. Daniel Petri, president of international telecommunications at Bell Atlantic, said the two companies, once merged, "plan to achieve global status." The push into international markets, he said, could include acquisitions, particularly in Europe, he said. "A strong position here will be a priority," he said. Today, only Bell Atlantic has a European presence, and that is limited largely to a stake in Omnitel Pronto S.p.A. (Milan), an Italian mobile operator, and another in EuroTels, a mobile company operating in the Czech and Slovak republics. GTE, however, is already busy establishing global position in the Internet space. Paul Gudonis, president of the Internet division of GTE, said the unit is currently expanding its global Internet backbone, adding undersea capacity, installing nodes in major business centers and forming alliances with Internet Service Providers (ISPs) in major markets. "The Internet is really what it is all about," said Attwood. "We already have one of the largest IP [Internet Protocol] backbone operations in the world. We are way ahead of Concert [the new global telecommunications venture, being rolled out by AT&T Corp. and British Telecommunications PLC]." HOME \| BUSINESS/POLICY \| INFRASTRUCTURE \| INTERNET \| WIRELESS All content created and maintained by CMP Media Inc. or its agents. Copyright 1999. All rights reserved. telecom99news.itu.int