To: rocki who wrote (371 ) 3/4/1999 9:04:00 PM From: rocki Respond to of 1341
Bell, MCI ring up alliance Gazette 4Mar99 I mentioned this after the ASM meeting in Jan, takes awhile to get officially released. Note both alliance with MCI and later Quest and a third possible, Level 3. What is important is this was an alternate route to the US, not only by acquisitions. Goes with Nexxia broadband superhighway. note in the text>>"When the Royal Bank or CIBC asks Bell, 'Can you assure me that you can have service in New York City?' Bell has to be able to make that assurance," Which banks are in e-route???? hmmm READ THE FOLLOWING Bell, MCI ring up alliance Surprise deal leaves Canadian rival BCT Telus without a U.S. partner ANDY RIGA The Gazette Bell Canada formed a strategic alliance with No.2 US. long-distance company MCI Worldeom Inc. yesterday to beef up the services it offers to large corporate customers. Under the deal, the two companies say they will be able to provide seam less North American and global voice and data services by early next year. Bell will be the exclusive distributor of MCI's voice and data services tbrough out Canada. Terry Jarman, president and chief executive of Bell Nexxia, a Bell divi sion providing national voice and data services to corporations, said the deal will help Bell better meet customers needs. Canada and the U.S. form the largest business telecornmunications corridor in the world Data traffic, in particular, is on the increase. Over the past two years, MCI has experienced 120-percent growth in Canada-U.S. crossborder data communications, said Walter Schonfeld, a senior vice president at MCI. Previously; MCI had a similar deal with Stentor; an alliance of regional phone companies that collapsed last year because members wanted to start competing in one another's territories. There had been speculation that BCT.Teius Communications Inc., a company created with the merger of British Columbia's and Alberta's phone companies, would nab an agreement with MCI, hereby leaving Bell in the lurch. Instead, BCT.Telus is now left without a partner in the U.S. The other two large U.S. carriers AT&T Corp. and Sprint Corp. both already have ties to Canadian long distance companies. lain Grant, a telecommunications analyst with Yankee Group Canada, said he was "a little surprised Bell got an exclusive agreement" with MCI. The deal is a coup for Bell, a division of Montreal based BCE Inc. It shows that it's out in front, it's still riding the wave, they have some momentum here," Grant said. But, he said, "I think there are some other shoes to drop and perhaps (BCT.Telus) has more up its sleeve than it's letting on right now" BCT.Telus, for example, could sign a deal with an upstart U.S. telecommunications company; such as Qwest Com-munications International Inc. and Level 3 Communications Inc. The deal with MCI gives Bell a much needed partner in the U.S. to handle the needs of its large customers. "When the Royal Bank or CIBC asks Bell, 'Can you assure me that you can have service in New York City?' Bell has to be able to make that assurance," Grant said. "With MCI's help that becomes very easy to do." MCI, a behemoth with more than $30 billion in annual sales, but little presence in Canada, will use the deal to further expand north of the U.S. border "MCI wants somebody up here who will look after their customers," Grant said. 'If they sign a deal with General Motors for global communications, they need to have some partner at the other end of the phone in Canada who can take the order and implement it," so its branch plants in Canada are also connected.