The Cable and Wireless/Telecom Italia deal is bad news for BT. C&W would have still been a sensible partner for BT, if they could get to grips with the price, but now a deal would be even more complicated than before and would likely be held up in EU anti-trust process for a while. BT probably won't even try.
Sadly BT has been too conservative when pricing these deals, and another one has seems to have slipped by. A few aggressive moves would be welcome at this point, but all Bonfield keeps saying is he's looking. While he's looking, everyone else is getting on with cementing mergers and alliances, leaving BT looking silly.
I too saw the Economist article April 4th, and it was pretty damning of BT's culture. Basically, BT is still a good alliance partner for any global player, but after the failure of the MCI deal and the failure of C&W talks over the last 2 years, you've got to wonder if the management can actually deliver the goods.
There's still a lot more to come in global telco consolidation, but unless BT gets its act together it'll find that rather than achieving its goal of being one of a few global players, it'll get swallowed up in the melee and wonder what the hell happened.
I saw an article in "The Economist" dated april 4th talking about how BT needs to invest in their fiber (estmated cost of 10 billion). The article also talks about possible mergers such as Qwest, Cable & Wireless, Sprint and others. It seems to me that IXC Communications (known for their fiber) might be someone BT should have an eye on...?
I can't see the wcom/mci merge seriously being considered an internet monopoly. I live in California and the number of options here make that obvious.
BTY certainly seem to be cash rich, any thoughts on where it might be looking next? Also do you happen to know if wcom got the Spanish/S America deal *instead of*, or *as well as*, BTY?
Off subject a little, but do you have any further info on the Nortel joint venture (forget the partner, have to look it up) in the UK giving internet access via power lines?
As a matter of interest (and relevant to BTY and its future business) how is the internet catching on in the UK, is charging for local calls still an issue - is there any resolution in sight? Any other alternatives around like the Nortel pilot? Everyone I know in the UK seems to be on AOL - obviously you've found Yahoo, are you unusual!