There were big names galore gathered in Washington for the Networked Economy conference – from Commerce Secretary Ron Brown to a host of high-profile chief executives jockeying for position in the brave new multimedia world to come. Needless to say the ubiquitous Reuters news wire had its reporters on the spot to record the proceedings, and the consensus of the meeting was that wireless communications will replace personal computers as the next technology growth market. The personal computer business was yesterday’s growth business, it is not tommorrow’s growth business, Motorola Inc chairman George Fisher declared, while former Apple Computer Inc chairman John Sculley said he left to take the helm of Spectrum Information Technologies Inc earlier this week because of the promise of mobile communications. There is already an explosion of innovation in mobile device technology unlike anything we have seen since the beginning of the personal computer revolution about 12 years ago, Sculley said. Motorola’s Fisher said the next generation of software development would be focused on finding killer applications for the use of wireless technology. Sun Microsystems Inc chairman Scott McNealy predicted that electronic mail would prove to be that killer product, saying it had the potential to replace the US Postal Service once it invades the American home. Commerce Secretary Ron Brown showed up to promise that the Clinton administration will soon announce its position on legislation on the structural limits that now divide the communications market. He said he was less concerned with whether or not companies are big and more interested in if they are agile, competitive and forward-looking. He also promised the conference that the administration would fight barriers to US technology created by incompatible domestic and foreign standards and pledged to work to eliminate outright bans of US carriers and excessive access charges imposed by some markets.
More megamergers on the way, paving the way for firms like mine – John Sculley
The convergence of the communications and computer industries has arrived, and the truly stunning $30,000m merger of Bell Atlantic Corp and Tele-Communications Inc is just the start, the meeting agreed. John Sculley – within a week out as chairman of Apple Computer Inc and in as the new chief executive of tiny Spectrum Information Technologies Inc, Manhasset, New York, was among those declaring that the Bell Atlantic deal was a trend. He said the industries’ convergence and accompanying growth can only be accomplished by mega-deal competition. Sculley said he expects the much larger companies to pave the way for smaller players like his own firm. The vision of putting together these companies is not only brilliant but potentially sets the pattern for the remainder of the telecommunications industry, he said. Sculley said he hopes to build his new company into the leader of the wireless data transmission technology market, in much the same way that Microsoft Corp dominates the computer software market and Intel Corp leads the microprocessor market. The vision of putting together these companies is not only brilliant but potentially sets the pattern for the remainder of the telecommunications industry, he said of the proposed merger of Bell Atlantic and Tele-Communications that has shaken the industry.
MCI must get into cable; US is seeking too much from airwaves auction
MCI Commmunications Corp chairman and chief executive Bert Roberts told the conference that MCI is going to have to be involved in the cable-telephone convergence. Taking part in a panel discussion at the conference, he said that MCI plans to be a major player in wireless communications and that such a role will be necessary for MCI to continue to grow and protect its marketplace. After decades of living from hand to mouth in the shadow of AT&T Co, MCI is at last in a position to pursue its vision without having to worry too much about stretching its balance sheet after its deal with British Telecommunications Plc
that will bring with it some $4,000m of new money. Roberts also predicted that the US government would fail to meet its goal of raising $10,200m from its first-ever auctions of the nation’s airwaves rather than – as previously, offering them by ballot. The government estimated that it could raise that amount after it proposed the competitive bidding concept, a departure from its current lottery system. The government is smoking something to think they’re going to get $10,000m for these licences, he retorted. Asked later how close he expected the government to come to the figure, Roberts said: I don’t think they’re going to get anywhere near that. BellSouth Corp chairman John Clendenin said he thought the government estimate was sort of pulled out of thin air – there’s no rational methodology on which that $10,000m was calculated. Roberts said the government’s attempt to promote a national information infrastructure appears inconsistent with its new spectrum auction policy, which seems to be aimed largely at bolstering the treasury’s coffers.
Tele-Communications chief Malone will stick around, sees big things in UK
Tele-Communications Inc chairman John Malone told the conference that he intended to stay involved personally in venture capital activities after the proposed merger of his company with Bell Atlantic Corp. He added that his first challenge and priority is to help the merged companies find synergies and develop multimedia products. But Personally, I will stay involved in venture capital activities that I have always been involved in and enjoy. Malone will become vice-chairman of the merged Tele-Communications Inc and Bell Atlantic, when the transaction is completed. He also forecast a major role for his cable company in the UK cable television market, where it already has several joint ventures, saying he sees the UK as an area for growth.
BellSouth will view invasion of its turf by new Bell Atlantic as hostile
Bell Atlantic’s largest sibling among the Baby Bells, BellSouth Corp, has been seen as among the most likely among the other Baby Bells to make a move toward buying cable operations. There’s going to be a rush of additional convergences among telephone and cable TV companies, said its chairman John Clendenin. He added that BellSouth would regard the Bell Atlantic deal as competition if the new company does business in BellSouth’s territory. If we face a market challenge in our area we will respond, he said adding that the merger pact was a very powerful move. I have admiration for the vision represented there.
