Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: soylent who wrote (2839)	7/9/1998 12:27:00 PM
From: Anthony Wong	Respond to of 11568

Top Long-Distance Cos.' Earnings Reflect Focus In Hectic 2Q July 09, 1998 11:43 AM By Shawn Young NEW YORK (Dow Jones)--The nation's biggest long-distance companies spent the second quarter plotting gargantuan mergers and dramatic technological changes, but stayed focused enough on the present to meet or exceed earnings targets. Businesses and consumers kept up a drumbeat of demand for more phone and data services as AT&T Corp. (T), MCI Communications Corp. (MCIC), WorldCom Inc. (WCOM) and Sprint Corp. (FON) pursued costly plans to improve their networks, push into new markets and sew up mergers. The heavy spending that accompanied those efforts dented earnings in the quarter ended June 30, but the companies took advantage of steady underlying business trends, analysts said. Data services and business revenue were a major source of growth for all the top carriers, while the tricky consumer market stabilized but remained unkind to AT&T. AT&T, the nation's largest long-distance company, excelled at cost-cutting, saw growth in services to business and introduced a promising new flat-rate wireless program. But it is expected to report revenue growth of less than 1% and a slide of about 5% in revenue from consumers. "It was a mixed bag at the top line, but a very impressive bottom line," said CIBC Oppenheimer analyst Harry Blount. AT&T, based in New York, said last month that earnings from continuing operations jumped at least 54% to between 88 cents and 92 cents a share from a low point a year ago of $928 million, or 57 cents, on revenue of $12.73 billion. The year-ago figure excludes discontinued operations. Before the company issued its earnings preview, analysts had expected it to report earnings of 80 cents to 82 cents. The consensus of analysts surveyed by First Call Inc. now is that the company will report earnings of 88 cents. AT&T attributed the unexpectedly strong quarter to success in the cost-cutting effort, which was its most immediate priority. That program is at least a year ahead of schedule. The next priority for AT&T is to generate growth. Near the end of the quarter, AT&T announced an ambitious longer-term plan to transform its consumer business and crack the $110-billion-a-year local phone market by buying Tele-Communications Inc. (TCOMA, TCOMB) and offering combined local, long-distance, Internet and cable service via cable wires. Investors, worried about earnings dilution and technical challenges, have given the deal a frosty reception. Meanwhile, MCI and WorldCom, which are planning to close their $37 billion merger later this summer, took a nerve-jangling ride through the regulatory thicket without losing sight of their bottom lines, analysts said. European regulators took a hard line on the deal, which appears to have cleared its toughest regulatory hurdle.

To: soylent who wrote (2839)	7/9/1998 12:29:00 PM
From: Anthony Wong	Read Replies (1) \| Respond to of 11568

WorldCom, Williams Reach Deal On Cross-Use Of Fiber-Optic Networks July 09, 1998 11:45 AM TULSA, Okla. -(Dow Jones)- Telecommunications giant WorldCom Inc. and Williams Cos., an energy company that recently reentered the telecommunications business, said Thursday that they have reached a settlement in a dispute regarding use of a single strand of fiber in a network acquired by WorldCom from Williams in 1995. Three years ago, Williams sold almost its entire national network, known as Wiltel, to WorldCom for $2.5 billion. As part of that deal, Williams agreed to not compete against Worldcom for three years in selling many kinds of telecom services. The noncompete clause expired in January, when Williams announced its return to the business with an 11,000-mile fiber-optic network and $1 billion in contracts. Williams said Thursday that the settlement gives it the right to purchase, with restrictions, a single strand of fiber on WorldCom's constructed long-distance networks. The single fiber is to be used for carrying video and Internet traffic, but excludes fax or voice transmissions throughout the public switched network. Williams (WMB) said all restrictions on the use of the fiber will expire in July 2001, making it available to support all long distance, data and voice applications in addition to other services after that time. Jackson, Miss.-based WorldCom (WCOM) will have the right to purchase, without restrictions, a single fiber on selected routes along Williams Network's existing network as well as its fiber in development. Williams filed the lawsuit in March, claiming that the 1995 deal contained a provision that gave it the right to buy fiber-optic capacity at "economical rates" throughout WorldCom's network. Tulsa, Okla.-based Williams wants to expand beyond its status as the nation's largest operator of natural gas pipelines. It is bidding to become one of the country's main providers of wholesale high-speed communications services, capitalizing on the practically insatiable appetite for networks that can carry voice, video and data traffic. Copyright (c) 1998 Dow Jones & Company, Inc. All Rights Reserved.