An overlooked piece of Teleport is BizTel, a subsidiary that owns and operates licenses in the 38 Ghz spectrum. This means they compete with Winstar for business customers. Could this spectrum be utilized for local residential service? At the very least, it can be leveraged to further develop Project Angel. Anyone know if they can use this for local?
There are still plenty of people at T working on "Angel" today, perhaps for posterity I don't know...
Personally, I think the best bet is to send Pesci & DeNiro to have a talk with Judge Green, and make the LECs give back T's copper.
In lieu of that, I think Angel has limited applications, but for the most part it's just too expensive to implement.
In MHO there is room to "sell" Angel even at a cost of $300 amortized. There are a lot of us who would like to see competition thrive and the trick is to come up with a compelling message.
By the way, I do not own T; I do own SBC and GTE. I would still like to see competition in the local market.
thnik $80 is a pretty good target price. I could see it being even higher by year's end. I
think T will enjoy a $12-$15/share run-up over the next couple of months because of the following:
1) Armstrong effect. The TCG acquisition will be viewed positively on Wall Street (up over two already) & make him look like even more of a savior. Add $2-$3/share over the next few weeks.
2) Flight to quality. As the Asian flu spreads, more money will pour into bliue chips. Add $2-$3.
3) AT&T's stock price took a big hit last week after the SBC ruling stating that RBOCs should be able to offer LD. That ruling will be tied up for a while (at least a year). As soon as the lawyers for the major LD companies get an injunction look for a $2-$3/share pop.
4) AT&T's 4Q revenues are expected to be outstanding. Revenue will estimates will be revised upward. Look for another $1-$2 pop.
5) Armstrong's action plan to be announced later this month will be good for a $4-$5/share pop.
6) AT&T's stock price will continue to trend up as Armstong cuts cost and sells non-strategic assets. Plenty of fat left to trim. This guy is serious about getting AT&T's stock price up. $3-$4 pop.
All = Armstrong is doing a phenomenal job if the TCG deal goes through. Look for $70/share real soon.
7) Other alliances will be announced. Look for a major cable alliance (maybe @Home) & a major international alliance. If the RBOCs don't wna to fairly price unbled local loop, cable could be a great entry mechanism to offering residential local service.
RESEARCH ALERT - AT&T price target raised
NEW YORK, Jan 8 (Reuters) - Deutshe Morgan Grenfell analyst Stuart Conrad said he raised the price target on AT&T Corp (NYSE:T - news) to $80 a
share from $60.
-- Additional details were not immediately available.
AT&T and Teleport Communications Group to Merge
TCG to Become Core of AT&T's Local Services Unit
NEW YORK--(BUSINESS WIRE)--Jan. 8, 1998--AT&T announced today that it has signed a definitive merger agreement with Teleport Communications
Group (TCG) for an all-stock transaction valued at approximately $11.3 billion. Under the agreement, each TCG share would be exchanged for 0.943 of an AT&T share.