Merger between WorldCom and Sprint Corporation
The past few years have been characterized by trends such as privatization, liberalization and deregulation in industries once managed by the government. Take the telecommunications sector as an example: In the early 1990s, over 129 countries set up privately owned regulatory agencies, and another 100 countries privatized the government-controlled telecom companies. The Federal Communication Commission (FCC) of the US telecom Industry strives to control competition, standardize prizes and inspect foreign communication. The same issues licenses to various service providers under their jurisdiction. The institution also helps telecom services across the country to establish themselves and get running. Protection of consumer rights is also part of their mandate. They are also the ones behind the National Broadband Plan (National Research Council, 1995).
The debate on the government policy on the information industry has been on for quite some time now. As a matter of fact, the telecommunications sector is a major requisite for the growth of the economy. The existence of the telecommunications sector dates back to the years when the Bell system achieved high quality communication over long distances. That was the turn of the 20th century. Since then, the telecommunications sector has been under the watch of both state and national governments. The policy on two issues has particularly been of concern to many. These are: the necessity of nationwide inter-exchange traffic for the benefit of the consumers, and the long-term economic advancement of the country (National Research Council, 1995).
For this reason, and many others, any upcoming initiative related to the countrywide telecommunications infrastructure must be well thought and, in a position, to challenge the comprehensive regulatory superstructure that has been in operation for over 20 years and still has a say on the actions of key players in the telecommunications...
References
Baye, M., & Prince, J. (2017). Managerial Economics & Business Strategy (9th ed.). New York, NY: McGraw-Hill Education.
Berg, S. V., & Weisman, D. L. (1991). Berg Costing Principles. Costing Principles in The Telecommunications Industry, 8-15.
Blumenstein, R. (1999, September 24). MCI WorldCom, Sprint talking merger. Retrieved December 8, 2018, from https://www.zdnet.com/article/mci-worldcom-sprint-talking-merger-5000103331/
Cannon, R. (2000, January 26). MCI / Sprint Merger. Retrieved December 8, 2018, from http://www.cybertelecom.org/industry/mci_sprint.html
National Research Council. (1995). The Changing nature of telecommunications/information infrastructure. National Academies Press.
The transaction was all-cash and was estimated at approximately $4.3 billion, including the assumption of approximately $900 million of net debt. Before acquiring Alamosa, Sprint Nextel Corporation was involved in some litigation issue with one of Alamosa Holdings' subsidiaries, AirGate PCS Inc. Therefore, completing the Alamosa acquisition brought final resolution in this matter. Alamosa was one of Sprint's most important affiliates before the merger with Nextel and the acquisition
The first three organizations in line to recuperate their funds were Citigroup, J.P. Morgan and General Electric Group. They had been offering financial solutions and encouragement to purchase the WorldCom stock based on a favorable business relationship. However, at the time when bankruptcy procedures were commenced, the three organizations recognized their losses and intended to recuperate them. A succinct presentation of the period surrounding the crisis could be reveled by
The deal was immediately criticized as anti-competitive by William Kennard, the chairman of the Federal Communications Commission, and by the Communications Workers of America, which represents some workers at both of the merged companies. But neither government regulators nor union bureaucrats will have the slightest impact on the latest merger. They have neither the power nor the desire to oppose the plans of the giant telecommunications monopolies. More substantial opposition
By "spreading these large expenses over decades rather than years," WorldCom's appeared to do the impossible: "cut annual expenses, acknowledge all MCI revenue, and boost profits from the acquisition" (Moberg & Romar 2008). Who wouldn't want to invest in such a profitable company? Investors, mislead by such accounting data, flocked to buy the stock, Based upon analysts' recommendations, many people used the stock to bolster investment portfolios designated for retirement
Wireless Broadband Technology Overview of Wireless technology Presently it is quite evident to come across functioning of a sort of wireless technology in the form of mobile phone, a Palm pilot, a smart phone etc. With the inception of fast connectivity in the sphere of commerce it is customary and useful to operate from central locations communicating with the remote branches, conducting conferences in remote places, discussing with every body at every
HSPA+ is expected to be commercially available in 2008 through [the introduction] of incremental investments and backward and forward compatible handsets. HSPA+ doubles the data capacity and increases voice capacity by three times enabling operators to offer mobile broadband at even lower cost" (Release 7 HSPA+, 2007, p. 3). Likewise, Housami (2008) reports that, "HSPA+ is a manifestation of the evolved HSPA philosophy where the existing HSPA implementation is
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