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Scott: assessing the best way of delivering value
01 May 1999
IXC Communications is building a coast-to-coast fibre-optic network in the US. Following the announcement of the Frontier-Global Crossing deal in March 1999, the operator has been mentioned as a possible acquisition target by either a domestic or foreign telco. Chairman, CEO and president Ben Scott talks to Global Telecoms Business about the operator's plans.
IXC Communications creates network-based delivery solutions to
meet the requirements of the global communications market. It
is expanding its network from 9,300 miles today to over 16,000
by the end of 1999.
A wholesale provider, IXC Communications is also targeting
small and medium-sized businesses in retail and is increasing
revenues internationally, in particular from its joint
ventures, Storm, in Europe and Marcatel in Mexico.
In 1998 IXC Communications more than tripled operating cash
flow to $90.7 million, up from $23 million in 1997. However,
despite this success, the company is still under-valued,
compared to its peers. Doubts have been raised about its
ability to maintain growth, as the switched wholesale
long-distance business, one of the principal revenue generators
for IXC Communications, becomes increasingly competitive and
pricing/unit margins decline. A recent decision to employ the
services of Morgan Stanley Dean Witter to investigate different
ways of enhancing the company's value has been interpreted as a
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