By Jon Bernstein, 27 July 1998 06:44
NEWS BT's long search for an international partner may be over, following a multi-billion dollar deal with AT&T. The joint venture will see the two companies pool their international assets and offer voice and data services to business customers and other telecoms operators. The two companies expect these services to generate £6.25bn worth of business in the first 12 months, rising 15 per cent a year. The venture will be based in the eastern United States and will employ 5,000 people. The chairmanship of the new venture - still to be given a name - will be held on a two-year rota. BT chief executive Peter Bonfield will hold the post until 2000, when AT&T president John Zeglis will take up the reins. As part of the deal, the two companies will build a managed Internet Protocol (IP)-based global network. It will support services such as ecommerce, international call centres, and Internet Telephony. If the deal gets the go-ahead from regulators, AT&T is likely to abandon its existing global agreements - Unisource in Europe and World Partners with Singapore Telecom. However, BT hopes to maintain its existing European alliances. It has agreements with Viag in Germany, Telefonica in Spain and Cegetel in France. Last year BT attempted to get a firmer grip on the international telecoms market with the acquisition of US long-distance carrier MCI. That plan was scuppered when Worldcom put in a higher £23bn bid.
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