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To: djane who wrote (47109)5/19/1998 3:24:00 AM
From: djane  Respond to of 61433
 
Mr. Katt rumor. Qwest to announce more deals with RBOCs

Something's going down, and it's not the economy

By Spencer F. Katt
05.18.98

www8.zdnet.com

Has the free world fallen? Has
the economy crumbled? Has the
capitalist machine been crippled?

Looks like Chairman Bill was wrong. After Microsoft cried
uncle to the Department of Justice and 19 states last week,
agreeing to delay shipment of Windows 98 by one business
day, the Power Meower waited for Armageddon. After all,
Gates and his pep-rally cronies just about predicted the
country's next Black Friday if the shipment was interrupted.

The market didn't collapse, but Microsoft did.

All the action apparently happened behind the scenes, when
Microsoft decided to raise the white flag (or the DOJ and
states got cold feet, depending on how you look at it).

So how much pull do Pfeiffer, Dell, Halpin and crew have in
Texas? Must be a lot, since they squeezed Texas Attorney
General Dan Morales out of last week's action. Pretty
surprising, considering Texas was the first state to start
pushing Microsoft around more than a year ago.

When it rains, it pours, and it's been teeming in Seattle for
nearly two weeks. That's probably why no one at the
Redmondian monster could muster much panic last week. El
Gato was walking the campus halls there--after being buzzed
inside without any Microsoft handlers in hand--and it looked
like business as usual.

The lax security was probably to blame when one
20-something Microserf was almost abducted last week,
after a man jumped from the bushes and duct-taped her feet.
Fortunately, the campus police showed up in time to foil any
further mayhem.

The one-day delay of Windows 98 may not cause any such
disruption for OEMs. Good thing, as direct marketers Dell
and Gateway have enough problems with service to keep
them busy. According to one Katt confidant, after his parrot
gobbled the Windows key on his keyboard, he called Dell
service for a replacement. The tipster expected Dell to ship
him a new key. Instead, the service rep said, "Ship me the
keyboard, and we'll replace it"--to the tune of $159!

One poor Gateway customer told the Tabby his $3,000
G6-300 went on the fritz just a month after purchase and
while under warranty. When Gateway techs couldn't find the
source of the problem, they blamed everyone but themselves
and told the user he was on his own.

Customer service ain't what it used to be. At least Microsoft
reps are working overtime to please people. When one
Internet Explorer user called tech support because he
couldn't download the 128-bit encrypted version of the
browser at the company's Web site, the help desk helper
replied, "Try Netscape's site."

It may have felt like the Microsoft-DOJ-states duel was the
only game in town, but big things were happening in the
world of telecom, too. In addition to the SBC-Ameritech
megamerger, long-distance provider Qwest Communications
was busy. After Qwest reached two joint selling agreements
for local and long-distance services with RBOCs US West
and Ameritech, look for the upstart long-distance provider
to announce more RBOC deals in coming weeks.


Interestingly, the two recent deals with US West and
Ameritech mark a departure in approach between Qwest
CEO Joseph Nacchio and Brian Thompson, the CEO of
Qwest's planned merger partner, LCI International--and
actually put LCI and Qwest in direct competition until their
merger is completed.



Have a tip? Contact Rumor Central by phone at (781) 393-3700 or
via e-mail at spencer_katt@zd.com.



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