| BUSINESSWEEK ONLINE : APRIL 12, 1999 ISSUE | ||||||||
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| COVER STORY
The Telecom Scorecard The U.S. telecom industry is a far different creature from when AT&T and the seven regional Baby Bells ruled the roost. Today, consolidation is reducing the number of regional companies to four, and things look a lot different. THE BIG HITTERS... MCI WORLDCOM SALES: $30.4 billion NET LOST: $2.7 billion EMPLOYEES: 75,000 MARKET CAP: $169 billion Thanks to a string of acquisitions capped by the purchase of MCI last year, CEO Bernie Ebbers is on a tear. Most important, MCI WorldCom is the best-positioned telecom player in the fast-growing data market. One weakness: no wireless presence. SBC/AMERITECH* SALES: $46.0 billion NET INCOME: $7.6 billion EMPLOYEES: 204,209 MARKET CAP: $154 billion If his deal for Ameritech is approved, Whitacre will have a powerful lock on one-third of all the phone lines in the country. He promises that with that kind of scale, he'll compete in local markets against Bell Atlantic, Bell South, and others. BELL ATLANTIC/GTE* SALES: $57.1 billion NET INCOME: $5.2 billion EMPLOYEES: 255,000 MARKET CAP: $140 billion GTE gives Bell Atlantic beachheads for expansion in key regions beyond the East Coast, such as Los Angeles. The companies have a head start on SBC in long distance--GTE can provide the service already. *Assumes companies are combined AT&T/TCI* SALES: $59.4 billion NET INCOME: $3.8 billion EMPLOYEES: 140,000 MARKET CAP: $179 billion CEO C. Michael Armstrong has given the company hope by aggressively cutting costs, striking key alliances, and acquiring cable player Tele-Communications Inc. But he still faces imposing challenges, particularly in the long-distance business. THE ACQUISITION CANDIDATES... U S WEST SALES: $12.4 billion NET INCOME: $1.5 billion EMPLOYEES: 47,000 MARKET CAP: $28 billion CEO Solomon Trujillo is making an aggressive bid to expand with new services like video and high-speed Internet access. But the odds of success are against him. Unless he pulls off a miracle, U S West looks like takeover bait. SPRINT SALES: $17.1 billion NET INCOME: $0.4 billion EMPLOYEES: 64,900 MARKET CAP: $42 billion CEO William T. Esrey made a risky bet on wireless services that is paying off. But Sprint remains one of the smallest players in an industry where scale is critical. Look for one of the Bells to acquire the company once they're allowed into long distance. BELLSOUTH SALES: $23.1 billion NET INCOME: $3.3 billion EMPLOYEES: 88,400 MARKET CAP: $79 billion CEO F. Duane Ackerman is enjoying sunny days of late. Strong economic growth in the Southeast has helped BellSouth post enviable gains in revenues and profits. He runs the one Bell with an outside shot at remaining independent. DATA: COMPANY REPORTS, BW, BLOOMBERG _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ BACK TO TOP |
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