NETWORK WORLD NEWSLETTER: OPTICAL NETWORKING
10/13/04

Dear [EMAIL PROTECTED],

In this issue:

* AT&T, MCI seem ripe for the picking, but RBOCs say they are 
��not shopping
* Links related to Optical Networking
* Featured reader resource
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Today's focus:  Carriers speak out on consolidation

By Jim Duffy and Denise Pappalardo

Despite reports that AT&T and MCI are preparing to seek or are 
actively seeking buyers, the RBOCs are all but ruling themselves 
out as potential suitors.

SBC and BellSouth both said last week they have their hands full 
with Cingular Wireless' $41 billion acquisition of AT&T 
Wireless. SBC and BellSouth jointly own Cingular.

And Verizon, which is reportedly looking to acquire Vodafone's 
stake in Verizon Wireless, made no mention of an interest in 
acquiring an interexchange carriers (IXC) at last week's Goldman 
Sachs Communacopia conference in New York, where CEOs of the 
three RBOCs spoke. AT&T President David Dorman canceled his 
speaking engagement at the conference at the last minute, just 
before AT&T announced that it was laying off 20% of its 61,600 
employees this year instead of the previously announced 8%, and 
writing off $11 billion in assets as it exits consumer 
telephony.

Published reports have speculated that AT&T is trimming down in 
order to attract buyers as long-distance voice and data become 
less profitable, and recent court rulings are likely to raise 
the price of wholesaling access facilities from the RBOCs. The 
latter situation prompted AT&T to exit consumer telephony.

MCI, meanwhile, already has confirmed that it is seeking an 
acquirer. It is believed the RBOCs would be interested in the 
interexchange carriers (IXC) to expand their presence in 
nationwide enterprise data services such as frame relay and IP 
VPNs.

But SBC and BellSouth say they are not.

"Consolidation would be helpful" to raise SBC's profile in the 
enterprise telecom market "but that's not in our plan," SBC 
Chairman and CEO Ed Whitacre said at the Goldman Sachs 
conference.

Similarly, BellSouth "certainly has enough on its plate right 
now" with regard to the Cingular/AT&T Wireless merger, says 
BellSouth CEO Duane Ackerman. BellSouth and AT&T had courted 
each other earlier last year, but a deal fell apart when the 
parties could not agree on a price.

For the complete story, please go to: 
<http://www.nwfusion.com/news/2004/101104rbocs.html?op>
_______________________________________________________________
To contact: Jim Duffy and Denise Pappalardo

Jim Duffy is managing editor of Network World's service provider 
equipment coverage <http://www.nwfusion.com/edge/>. He has 18 
years of high-tech reporting experience, including over 12 years 
at Network World. Previously, he was senior editor at Computer 
Systems News and associate editor/reporter at Electronic News 
and MIS Week. He can be reached at <mailto:[EMAIL PROTECTED]>.

Denise Pappalardo is a Senior Editor at Network World covering 
service providers. She can be reached at 
<mailto:[EMAIL PROTECTED]> 
_______________________________________________________________
This newsletter is sponsored by Veritas 
Meta Group Whitepaper 
Database Infrastructure Performance Challenges: Approaches to 
Better Manage Application Database and Storage Subsystem 
Performance 

Corporate relational databases now manage the majority of 
business-critical data within the enterprise. IT organizations 
face continuing challenges in managing increasingly complex, 
data-driven application environments. Read this white paper to 
discover several factors which will converge to challenge the IT 
organization's ability to manage its database software 
infrastructure. 
http://www.fattail.com/redir/redirect.asp?CID=84684
_______________________________________________________________
ARCHIVE LINKS

Breaking optical-networking news from Network World, The Edge 
and around the 'Net, updated daily: 
http://www.nwfusion.com/topics/optical.html

Archive of the Optical Networking newsletter: 
http://www.nwfusion.com/newsletters/optical/index.html
_______________________________________________________________
FEATURED READER RESOURCE
THE NEW DATA CENTER

Today's top companies are accelerating toward Web-based 
computing. That means building the new data center -- where 
grids, virtualization, autonomic computing and other big changes 
shatter the traditional boundaries on applications and 
information, and bring the extended enterprise to life. Learn 
about The New Data Center on NW Fusion's Research Center at:
<http://www.nwfusion.com/topics/datacenter.html>
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