giants of the era

Chapter 261 The Disintegration of the Telecom Giant

Flamingo released the news in advance, and its purpose is naturally to attack Nintendo and deter third-party game development companies.

In the next year, Nintendo's FC game console may hardly sell well.

In addition to the lack of support from third-party game development companies, even players and users will not buy FC.

Think about it, the Flamingo company announced that within one year, the product can be "traded in for the new", that means, from now on, buy the Flamingo-1 game console, then wait until the Flamingo company releases a new generation of game consoles this year Now, you can spend a small sum of money and trade in the old for the new. Why not do such a huge discount?

As for Nintendo's FC, who-care?

……

……

After Li Zetian finished dealing with Nintendo's affairs, he turned his energy to AT&T. He just told Nolan Bushnell to pay attention to Nintendo's development, and if there were any signs of rising, he would be notified immediately.

The full name of AT&T is the American Telephone and Telegraph Company, which can be said to be the largest company in the United States, with fixed assets of 1650 billion US dollars, monopolizing more than 95% of long-distance telecommunications services and more than 80% of local telephone services in the United States, plus Bell Labs And Western Electric Company, has become a telecommunications giant that integrates operations, scientific research and development, and equipment manufacturing, and has more than 100 million employees! ! !
Perhaps because of the butterfly effect, AT&T was supposed to split up on New Year's Day this year, but now it has been delayed for more than a month.

On February 1984, 2, the U.S. Department of Justice forced AT&T to split according to the "Antitrust Act". AT&T, which retained its original name, could only operate long-distance services. The 10 Bell Operations (BOC) to which AT&T belonged were reorganized into 22 regional Bell Operating Companies (RBOC), can only operate local business.The seven regional Bell operating companies are: Bell Pacific, Ameritech, Bell Southwest, Bell Western America, Bell Atlantic, BellSouth and Nynex.

At this moment, Li Zetian is frowning. After the split of AT&T, AT&T, which retains its original name, owns 340 billion US dollars of assets, and the remaining 1310 billion US dollars will be divided among seven regional Bell operating companies.However, Li Zetian couldn't spend so much money to buy these small Bell companies for a while.

"Oh, shit, the market value is so high, how can I buy it?" Li Zetian was distressed.

Dongfang Yuqin suggested: "Mr. Li, I suggest buying MCI."

"Why is that?" Li Zetian asked suspiciously.He also made a detailed understanding of the US telecommunications industry. MCI was the first competitor AT&T encountered in the long-distance telephone market, by laying a microwave network along the highway, and then connecting with the local cheap local telephone network , it can replace AT&T's long-distance telephone service, and the cost is much lower. In 1976, MCI's sales revenue was only 1 million US dollars, and its profit was only a mere 700 million US dollars, but by 130, its sales revenue had reached 1983 billion US dollars.

Dongfang Yuqin said: "MCI has been suing AT&T, and now it is indeed successful, but the legal victory cannot be transformed into a market victory!"

Li Zetian frowned, and his eyes signaled Dongfang Yuqin to continue.

"After the split, AT&T will no longer be constrained, and can switch from defense to offense, and compete fiercely with competitors such as MCI! In addition, with the bottleneck advantage of the 'last mile', the 'sub-Bells' can enjoy the benefits and greatly The access fee for long-distance calls to local calls has been increased, so one of the results of the split is that regional call charges have increased, while long-distance calls have decreased, and cross-subsidies no longer exist!"

Li Zetian nodded, knowing why Dongfang Yuqin suggested him to acquire MCI.Obviously, MCI is now facing more severe challenges and needs to introduce a lot of funds.In addition, in theory, after the spin-off, AT&T's old customers can freely choose other operator services, but the lock-in effect and inertia allow most customers to continue to choose AT&T.

However, although Dongfang Yuqin's suggestion is good, Li Zetian still needs to think about it carefully.With the popularization of IP telephony and broadband, people use e-mail, short message and wireless instead of long-distance calls in the past.Moreover, the competition in the long-distance market is extremely fierce, and AT&T's long-distance business is hard to shake!
The reason why Li Zetian wants to acquire the telecommunications industry is to become a monopoly giant of Internet service providers. He wins at the starting point. User.

Therefore, Li Zetian pays more attention to the telecommunications companies that operate local local calls.Acquiring these companies is not only to strengthen one's own strength, but also to curb the expansion of competitors.If Li Zetian does not buy these companies, then they will lease the cables to other companies.

Li Zetian hesitated for a week before making a decision. MCI's market value is not low, this acquisition is very important, Li Zetian is thinking about whether it is worth it.

At this moment, Li Zetian saw a piece of news on TV, which said that United-Telecommunications announced the establishment of the first nationwide digital fiber optic network communication plan, which was completed in 1987.

"Which company is United-Telecommunications in the future that actually has a plan for a digital optical network?!" Li Zetian was very surprised.However, when he saw the Sprint product trademark, he knew that the company was Sprint, one of the three major US telecommunications giants in the future, and it is estimated that it has not changed its name yet.

As far as Li Zetian knows, Sprint has always been praised by all parties for its development, engineering, and promotion of cutting-edge network technologies. It also plays a very important role in the development of the Internet. Its Tier-1 IP network is the backbone of the Internet. important part of the network.

"Instead of buying MCI, it's better to buy Sprint." Li Zetian said, and immediately went to the study to find out the information of Sprint. It is one step ahead in the development of network technology, and therefore has the first nationwide digital optical network plan.Obviously, Sprint also intends to enter the long-distance business. Sprint's management may not know that the rise of the Internet will be an unexpected explosive growth market, and the nationwide digital optical fiber network they are planning to build now will bring huge profits to Sprint!
"Sprint has a strong network technology reserve, and not only has local business, but also plans to build a nationwide optical fiber network. Obviously, this is the best acquisition target!" Li Zetian said with a smile, then went to the wine cabinet and took out a bottle Red wine, enjoy the wine in a happy mood.

Not long after, Dongfang Yuqin came to the study, and Li Zetian smiled and said to her: "I have decided to acquire United-Telecommunications!"

Dongfang Yuqin was stunned. In her opinion, a company like MCI, which dared to challenge AT&T and won in the end, had great potential for development.

Li Zetian patted her on the shoulder with a smile and said, "Don't worry, my investment vision is not wrong! Of course, your vision is also good. MCI is also a company with great development potential, but United-Telecommunications The company just has the technology and market I need!"

"Oh~" Dongfang Yuqin responded softly, and couldn't help lowering her head, her face flushed slightly.Because of her previous symptoms of hating men, she rarely had physical contact with men. The temperature of Li Zetian's palm on her shoulder seemed to give her a feeling of electric shock.

"Mr. Li, then I will give your order now..." Dongfang Yuqin hurriedly "fleeed".

"Well, let's go!" Li Zetian responded immediately, and at this time he also realized that Dongfang Yuqin is untouchable...

(End of this chapter)