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 : Newbridge Networks -- Ignore unavailable to you. Want to Upgrade?

To: zbyslaw owczarczyk who wrote (9805)	2/24/1999 12:03:00 PM
From: pat mudge	Respond to of 18016

-------------------------------------------------------------------------------- SBC's Little Big Deal -- Market Applauds Concentric Plan Feb. 22, 1999 (LTH - CMP via COMTEX) -- SBC Communications Inc. was busy again early this month, grabbing serious headlines for its move to strike a strategic alliance with Williams Communications Group Inc. (Tulsa, Okla.). That $500 million deal to give SBC low-cost access to Williams' fiber optic network certainly raised a few eyebrows, but that's not all SBC was up to in early February. All but lost in the hubbub over the Williams announcement was a smaller but also intriguing deal that saw SBC pick up a $19.5 million, 4 percent stake in Internet service provider (ISP) Concentric Network Corp. (San Jose, Calif.). As with the larger deal, the Concentric purchase is all about positioning. SBC wants to integrate Concentric's Internet-based services-including high-speed dedicated and digital subscriber line (DSL) access, Web hosting and e-commerce services-with SBC's portfolio of data services to more effectively tap into the midsize business market. The plan, which allows SBC to purchase another 4 percent share of Concentric by 2002, also calls for SBC to provide the telecommunications link between business customers and Concentric's points of presence (POPs). Both moves are seen as underscoring SBC's aggressive growth mode and, many argue, puts it at a competitive advantage over other Bell companies. In recently upgrading its position on SBC from "hold" to "buy," investment firm Salomon Smith Barney Inc. (New York) reports: "We believe the telecom landscape is changing and those Bells that aggressively pursue out-of-region opportunities will be in the position to offset share loss in-region. We think SBC fits that bill." The stock market apparently thought so, too: SBC shares gained about 4 percent right after the deals, pushing near $52 at press ti