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Technology Stocks : Qwest Communications (Q) (formerly QWST) -- Ignore unavailable to you. Want to Upgrade?

To: Rashe W. Stephens III who wrote (1296)	5/20/1998 12:02:00 PM
From: MangoBoy	Read Replies (1) \| Respond to of 6846

[AT&T Seeks Marketing Pact Like Qwest's With Baby Bells] (he wasn't kidding... mark) SEACAUCUS, N.J. (Dow Jones)-AT&T Corp. (T) sent letters late Tuesday night to all five of the Baby Bells inviting them to enter marketing deals similar to the ones Qwest Communications International Inc. (QWST) has struck with U S West Communciations Group (USW) and Ameritech Corp. (AIT), AT&T's chairman and chief executive C. Michael Armstrong said Wednesday. Qwest's deals, which AT&T is fighting in court, calls for U S West and Ameritech to act as sales agents for the Denver long-distance upstart. AT&T, MCI Communications Corp. (MCIC), and groups of smaller local carriers filed suit to block the Qwest deals saying the violate the Telecommunications Act of 1996 by allowing the Bells to play favorites among long-distance carriers. They also say the arrangements illegally allow the Bells a back-door entry into the long-distance market. Qwest and its potential partners maintains that the deals are perfectly legitimate. But Armstrong said if AT&T's understanding of the law is wrong, the number one long-distance carrier is eager to jump on what could be a huge revenue opportunity. "I was surprised that the opportunity has presented itself," Armstrong said, speaking before the start of AT&T's annual shareholders meeting here. "Given the circumstances, we'd be delighted to do business," Armsrong said." He was referring to a Chicago judge's decision Friday not to grant a temporary restraining order that would block the Qwest deal with Ameritech. The judge has yet to rule on whether to issue a preliminary injunction. A similar case in Seattle against the U S West deal is scheduled for a hearing June 1. The Chicago judge declined to dismiss the suit, and the companies await a ruling on whether the deals are legal. Meanwhile, AMeritech and U S West may continue to sign up customers for Qwest's long-distance service. Some of the Bells have shown an interest in striking marketing pact with AT&T, Armstrong said. He declined to elaborate. AT&T said it also sent a letter to GTE Corp. (GTE) suggesting a marketing alliance - again, assuming such deals are found to be legal. AT&T said it sees no contradiction in its decision to fight the Qwest pact in court while pursuing similar deals itself. "While we thought that it was - it may be - a violation of the Telecommunications Act, if it's not a violation, it's a terrific opportunity," Armstrong said. One of AT&T's co-plaintiffs in the suit, MCI, declined to say whether it too is pursuing such deals. A spokesman for Sprint Corp. (FON) said that company has not yet decided whether to do so. U S West and Ameritech have said their deals with Qwest are not exclusive. AT&T could be testing the openness of the bill to working with other carriers. But it is also pursuing what could be a lucrative opportunity for its struggling consumer business. Many consumers have expressed interest in combined local and long distance service; marketing pacts like those made by Qwest and proposed by AT&T are a step in that direction. Qwest Chief Executive Joseph Nacchio, formerly a top AT&T executive, said U S West has signed up 40,000 customers for Qwest in about a week. He estimated that deal would bring in revenues of up to $200 million in its first year.

To: Rashe W. Stephens III who wrote (1296)	5/20/1998 12:24:00 PM
From: MangoBoy	Read Replies (2) \| Respond to of 6846

another example of creative thinking from AT&T: "The company also is considering developing a service similar to MCI Communications Corp,'s (MCIC) 10-321, which allows customers to drop into MCI's network to make discount calls. Such dial-around services have hurt AT&T as its customers visited other networks in search of a bargain. AT&T says many customers are not getting the discounts they think they're getting when they use dial-around services. However, Armstrong said, dial-arounds seem to be popular, and AT&T could decide to establish one."