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Technology Stocks : WCOM -- Ignore unavailable to you. Want to Upgrade?

To: Mephisto who wrote (5376)	11/18/1999 4:15:00 PM
From: PDL	Read Replies (1) \| Respond to of 11568

Sanford Bernstein analyst: "Compelling arguments for WCOM and Sprint" NEW YORK, Nov 18 (Reuters) - Sanford Bernstein analyst Tod Jacobs said MCI WorldCom Inc. WCOM.O and Sprint Corp. FON.N made "compelling" arguments that their planned $115 billion merger would not harm competition. -- said expects the companies will be forced to divest Sprint's Internet business and may be forced to guarantee minimum spending and development of MMDS (multichannel multipoint distribution service) and DSL-based (digital subscriber line) local high-speed service for consumers and small businesses. -- said companies made strong arguments the deal should not be viewed as a threat to competition due to the blurring of lines between long distance and other telecommunications companies, exploding capacity, changing price structures and imminent long-distance entry by the Baby Bells. -- said expects the deal to close in the second half of 2000. -- said the companies contend the combined WorldCom-Sprint would hold 35 percent of the total domestic long distance market, compared with AT&T Corp.'s T.N 45 percent share. In the residential market, WorldCom-Sprint would hold about a quarter of the market, compared to AT&T's 58-59 percent share. -- said based on total U.S. telecommunications revenues, MCI WorldCom and Sprint argued they would be the No. 4 domestic phone company, behind AT&T, Bell Atlantic Corp. BEL.N and SBC Communications Inc. SBC.N -- said the companies argued they will not have the power to dictate prices in the industry, due to the competitive landscape. They also argued that the Baby Bell companies, which are poised to enter the long distance market, will add to competition and gain significant marketshare. -- said companies contend that ease of entry into the long distance business will not be hurt by the deal since many forms of marketing, service offerings such as Internet offers and multi-level marketing have exploded. REUTERS Rtr 15:28 11-18-99 Copyright 1999, Reuters News Service