| BUSINESSWEEK ONLINE : NOVEMBER 6, 2000 ISSUE | ||||||||
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| INFORMATION TECHNOLOGY
Hold the Phone Here's a look at how Mike Armstrong plans another breakup of AT&T: BUSINESS SERVICES Revenues: $29 billion The unit, which will retain the coveted AT&T network, will sell local, long-distance, data, and Internet services to businesses. It has lost customers of late, but it has the potential to be the most valuable piece of AT&T. Its revenues are expected to grow 5% to 10% a year. CONSUMER SERVICES Revenues: $19 billion This is the millstone around Armstrong's neck. The prime reason he's breaking up AT&T is that shrinking revenues in consumer long distance are restricting overall revenue growth. Consumer revenues this year are dropping by 11%, down from $22 billion last year. WIRELESS SERVICES Revenues: $10 billion The wireless business, growing 30% a year, could be a star. It sold stock this year, raising $10 billion that will help it buy the licenses and the technology for mobile Web services. BROADBAND SERVICES Revenues: $9 billion This includes cable-TV operations acquired over the past two years. It also has two promising businesses: broadband Net connections and local phone service over cable. Revenues should grow about 15% annually for the next few years. DATA: SALOMON SMITH BARNEY _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ BACK TO TOP |
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RELATED ITEMS Telecom Turmoil Cisco: Navigating Choppy Water CHART: Cisco's Slide TABLE: Where the Trouble Is AT&T: Breaking Up Is Still Hard to Do TABLE: Hold the Phone ONLINE EXTRA: Q&A with AT&T CEO Mike Armstrong Lucent: Clean Break, Clean Slate? TABLE: Can This Business Be Saved ``We Tried to Run Faster Than We Were Capable of'' (extended) INTERACT E-Mail to Business Week Online | |||
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