|
SBC plans tri-city attack
|
 |
February 4, 1999: 11:32 a.m. ET
Telecom picks Boston, Miami and Seattle for local, long-distance launch
|
NEW YORK (CNNfn) - SBC Communications Inc. will charge into Boston, Seattle and Miami in its bid to bring local and long-distance service to 30 new markets, the company said Thursday.
San Antonio-based SBC (SBC) wants to hit the three cities within about 12 months of completing its merger with Chicago-based Ameritech Corp. (AIT). That deal is expected to be finished by the middle of the year.
The plan falls under the company's "National-Local" strategy, under which SBC wants to enter the nation's top 30 markets outside of its home territories and provide local and long-distance service for businesses and residents.
The success of the strategy depends on completion of the merger. SBC and Ameritech already serve 20 of the country's top 50 markets within their territories.
Stephen Carter, who is directing the strategy, said 224 of the Fortune 500 companies are headquartered in SBC or Ameritech states.
"Those 224 companies operate more than 4,700 facilities in Boston, Miami and Seattle alone," Carter said, "spending nearly $125 million annually on local and long-distance service. These are terrific initial markets for us.
Carter also said the large business customers generate the lion's share of revenues needed to invest in the network and keep residential costs low.
This has been a busy week for the telecom sector. First, AT&T Corp. (T) and Time Warner (TWX) announced a deal to offer cable-based telephone service to homes and small businesses in 33 states. Then MCI WorldCom said it will lease the Bell Atlantic (BEL) network to offer local-calling services through most of the New York State.
SBC stock was down ¾ at 50-11/16 in late morning trading. Ameritech was down 3/16 at 62-1/4. 
|
|
|
|
|
 |
|
