By Lisa Burroughes, 25 March 1999 17:26
NEWS US telco, AT&T has put its UK business up for sale as a prelude to its $10bn joint venture with BT, according to a report in the Guardian. The business includes network and service provision for some of the UK's largest firms - including Hertz, ICI and United Airlines. The company claims it serves around 15 per cent of UK-based multinational companies. AT&T also has a smaller share of the residential market. An AT&T spokesman refused to confirm the reports, but did agree that selling its UK business would be "one of the options we may choose or may be forced to do by the European Commission" to get final approval on the BT joint venture. Chris Lewis, analyst at Yankee Group, believes US companies are finding it difficult to make a real impact on the European residential market, which could be an additional factor in AT&T's decision. "US telcos are trying to apply a model to the European market that has worked in the US. But when they face the European market there is a different model for each country, so it hasn't worked." Lewis continued: "Also relatively little break up of the incumbent operators has taken place - they are still very dominant, so it is difficult for companies to come in on a national level because the competition is not as open." Communications group, MediaOne has also confirmed plans to leave the UK mobile market by selling or floating UK mobile phone company, One2One, which it jointly owns with Cable & Wireless. The sale follows MediaOne's merger with US cable provider, Comcast.
In order to post a comment you need to be registered and logged in.
Log in or create your silicon.com account below