The announcement last week that Comcast Corp. and MediaOne Group signed an agreement to
merge in a $60 billion deal driven by broadband cable networks could affect the wireless industry halfway around the
world.
MediaOne’s international wireless interests, which cover 4.3 million customers primarily in Europe, may be
up for grabs. Steve Lang, executive director of financial and corporate communications at MediaOne, said the company
has retained Lehman Brothers Inc. to explore its strategic alternatives with respect to those interests, consistent with its
strategy of concentrating on its international broadband networks.
Speculation about new alliances and partnerships
in Europe was furthered by a New York Times article that reported the Global One consortium of Sprint Corp., France
Telecom and Germany’s Deutsche Telekom could be nearing collapse. The article said Sprint Chairman William Esrey
recently sent letters to the Global One partners saying the venture was failing in its current form and the partners should
move decisively to resolve the partnership.
All three members of the consortium released statements in response to
the article reaffirming their confidence in the joint venture.
“Deutsche Telekom, France Telecom and Sprint
stand by Global One and are convinced that the joint venture will achieve the goals that have been set,” said
Sprint. “The management staff of Global One is on the right path with the restructuring that is now taking place
and expects to break even by the year 2001.”
Esrey last year expressed disappointment in the operating results
of Global One and said the partners were taking action to address shortcomings in revenue growth, cost control and
management structure.
Global One partners Deutsche Telekom and France Telecom have been named as possible
suitors for One 2 One, the United Kingdom’s fourth-largest mobile carrier, which is owned equally by MediaOne and
Cable & Wireless plc. The parent companies said they are considering an initial public offering or a strategic sale of
One 2 One, which serves about 2 million wireless subscribers.
Other potential buyers reportedly include Germany’s
Mannesmann, Telecom Italia, Bell Atlantic Corp. and SBC Communications Inc.
Elsewhere, MediaOne’s wireless
interests that could become available include:
Hungary-a 49-percent interest in Westel, with Matav Ltd.
holding the remaining 51 percent;
Czech Republic-a 24.5-percent interest in EuroTel Praha, with SPT Telecom
holding 51 percent and Bell Atlantic holding the remaining 24.5 percent;
Slovakia-a 20-percent interest in EuroTel
Bratislava, with Slovak Telecommunications holding 60 percent and Bell Atlantic controlling the remaining 20
percent;
Poland-a 22.5-percent interest in Polska Telefonia Cyfrowa, with several companies holding the remaining
interests, including German carrier DeTeMobil with 22.5 percent;
Russia-a 66.5-percent interest in Russian
Telecommunications Development Corp., which also includes eight independent investment organizations;
Malaysia-a 12.6-percent interest in Binariang Berhad, with partners Usaha Tegas, Bumiputra Institutions and PNB
(54.1 percent), and British Telecom (33.3 percent);
India-a 49-percent interest in BPL Mobile with its partner BPL,
an Indian consumer electronics company;
Comcast’s wireless interests are in the process of being acquired by SBC.
