pment to build up brand preference.Consolidation Continues in Wire line Business. The U.S. telecommunications services industry, which serves more than 90 million households and 25 million businesses nationwide. The industry is broadly divided into providers serving the communications markets for local exchange, long distance (toll), international, cellular and mobile radio, satellite, and data communications, including value-added network services (VANs). More than 2,000 companies employing about 875,000 persons that serve these markets are both regulated common carriers and unregulated private network providers. http://www.ers.usda.gov/briefing/Infrastructure/InfrastructureTelecommunications.htm The telecommunications industry has witnessed a flurry of merger activity as companies rush to position themselves in a rapidly changing marketplace. The Telecommunications Act of 1996 set the stage for enhanced competition. This act enables large companies to become end-to-end providers of telecommunication services that cover the entire U.S. and world. Its important for these companies to find a merger partner because of the high cost of establishing new territories. Further, there are significant barriers to entry for local telecommunication services. Most telephone companies are consolidating to offer and bundle disparate services together. AT&T Sets Strategic Partnership with Time Warner. In February 1999, AT&T announced an aggressive plan to become the dominant telecommunications company in the world by partnering with Time Warner's cable service to provide local telephone access to consumers. The partnering deal will allow AT&T to provide at least 40% of U.S. households with the local telephone service. The deal will invariably put more pressure on local and regional bell operating companies to partner with other companies to block further inroads by AT& T into the lucrative local phone market. AT&T Acquires TCI C...
