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US WEST: bucking the merger trend to gain speed
01 February 1999
In June 1998 US WEST, the smallest RBOC bucked the merger trend of its competitors, when it completed a division into separate telco and cable companies. US WEST's president and CEO Sol Trujillo explains the thinking behind this move to Basil Ballhatchet and describes his vision of the new digital economy.
While other US operators sought to boost market share through
mergers and acquisitions in 1998, US WEST adopted a diametrically
opposite approach. In June 1998, the company completed a split into
separate telco and cable companies.
The new, leaner US WEST remains focused on its core territories
and aims to remain independent for the foreseeable future. US WEST
has virtually focused all investments on its 14 state operating
territory. "They offer a diverse range of services from traditional
voice telephony and data services to wireless services, "commented
Tom Aust, a telecoms equity analyst at Chase Research.
The company may not have the most expansive international policy,
but US WEST has been one of the leaders in offering high-speed
Internet and data services. It has a "Megabits" service, which
offers customers speeds from 256 kbps to 7 Mbps. Customers receive
their own private link to the Internet, their existing phone line,
increasing security and reliability....
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