& cplSiteName &
Comments
Newest First  |  Oldest First  |  Threaded View        ADD A COMMENT
Page 1 / 2   >   >>
mendyk
50%
50%
mendyk,
User Rank: Light Sabre
12/17/2013 | 4:28:59 PM
Re: SNET?
Well, actually, the guy who figured all this out years ago is one of the world's most famous capitalists -- Warren Buffett.
Carol Wilson
50%
50%
Carol Wilson,
User Rank: Blogger
12/17/2013 | 4:19:33 PM
Re: SNET?
Hey there, none of your socialist rabble-rousing. 
mendyk
100%
0%
mendyk,
User Rank: Light Sabre
12/17/2013 | 4:18:16 PM
Re: SNET?
"Pressure from Wall Street" usually has a corresponding internal pressure from executives whose compensation rides on share-price performance. It's a good thing there are rules to prevent share-price manipulation. Wink wink nudge nudge.
Carol Wilson
50%
50%
Carol Wilson,
User Rank: Blogger
12/17/2013 | 4:10:02 PM
Re: SNET?
Ah yes, the long-distance and wireless assets - good call, Duh, I had forgotten that piece of it. 

And I agree with Mendyk as well - AT&T is almost certainly looking for higher margins than Frontier will expect. I think AT&T is also under a different kind of pressure from Wall Street. 
Duh!
50%
50%
Duh!,
User Rank: Blogger
12/17/2013 | 4:07:00 PM
Re: SNET?
Took a moment to look up the history.

AT&T sold their 22% stake in SNET in 1984. 

SBC acquired SNET in 1988 for $4.4B.  That included significant long distance and some wireless assets, which I assume will stay with AT&T after the sale.  The purported reason for the acquisition was the long distance assets;  SBC had just shaken the Consent Decree's prohibition on long distance services.

AT&T sold the former SNET wireline properties to Frontier for $2B. 

One would need to go through SNET's 1998 financials to tease out the 1998 valuation of their wireline properties. 

Mendyk's margin hypothesis makes a lot of sense. 
mendyk
50%
50%
mendyk,
User Rank: Light Sabre
12/17/2013 | 3:02:24 PM
Re: SNET
This may be less an issue of lower opex than lower (read more realistic) expectations for business performance. The Tier 1s are convincing themselves that they can't afford to keep lower-margin products. Frontier thinks otherwise. And as at least one previous poster has pointed out, the margin decks may be stacked in favor of wireless right now at the Tier 1s. The obsession with margins seems to be a strong trend now across the business landscape in general, even though margin erosion is almost a certainty as products mature.
Carol Wilson
50%
50%
Carol Wilson,
User Rank: Blogger
12/17/2013 | 3:00:50 PM
Re: Whose idea?
Interesting thought, Dan, that Frontier might have driven this deal. I don't believe AT&T and Verizon would sell any assets - Verizon isn't likely to sell its landline networks where there is a heavy percentage of FiOS deployment. There were only pockets of FiOS in what they sold Frontier. 
Carol Wilson
50%
50%
Carol Wilson,
User Rank: Blogger
12/17/2013 | 2:52:16 PM
Re: SNET
Wow, after all this time, it's still a challenge to blend different methods of operating? I remember writing about SBC's acquisition of SNET and it seems like centuries ago. 
DOShea
50%
50%
DOShea,
User Rank: Blogger
12/17/2013 | 2:27:33 PM
Whose idea?
This seems like a property Frontier would naturally be interested in, and I wonder how much they drove this deal to happen, and if AT&T was really actively looking to sell or not. Could the big telcos be at the stage where they will let any landline properties go if they meet a motivated enough buyer?
Aloysious
50%
50%
Aloysious,
User Rank: Lightning
12/17/2013 | 2:22:39 PM
Re: SNET
I find it rather hilarious that AT&T and Verizon want to dump off the areas that it doesn't find profitable all the while receiving state/federal dollars for years to service those areas.

Oh, and they are the only companies in those area for a reason....they made it that way with some of their absurd franchise agreements.

Now, they are dumping them off with laughable VoiceLink-like services?

Not a chance. Glad to see New York fight off Verizon's attempts to make a few more bucks....all the while still receiving top dollars from the cities/states in tax breaks.
Page 1 / 2   >   >>


Featured Video
Upcoming Live Events
September 17-19, 2019, Dallas, Texas
October 1-2, 2019, New Orleans, Louisiana
October 10, 2019, New York, New York
October 22, 2019, Los Angeles, CA
November 5, 2019, London, England
November 7, 2019, London, UK
November 14, 2019, Maritim Hotel, Berlin
December 3-5, 2019, Vienna, Austria
December 3, 2019, New York, New York
March 16-18, 2020, Embassy Suites, Denver, Colorado
May 18-20, 2020, Irving Convention Center, Dallas, TX
All Upcoming Live Events