Chapter 261 The Collapse of Telecom Giants

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

In the next year, it may be difficult for Nintendo's FC game console to sell well.

In addition to not receiving support from third-party game development companies, even players will not buy FC.

Think about it, Flamingo Company announced that within one year, products can be "traded in for new ones." That means that starting from now, if you buy a Flamingo-1 game console, then wait until Flamingo Company releases a new generation of game console this year. At that time, you can spend a small amount of money to trade in the old one for a new one. Why not take advantage of such a huge discount?

As for Nintendo’s FC, who-care?

…

…

After Li Zetian finished handling Nintendo's affairs, he turned his attention to AT\u0026T. He just told Nolan Bushnell to pay attention to Nintendo's development and notify him immediately if there were signs of its rise.

AT\u0026T's full name is American Telephone and Telegraph Company. It can be said to be the largest company in the United States, with fixed assets of US$165 billion. It monopolizes more than 95% of the long-distance telecommunications business and more than 80% of the local phone business in the United States, plus Bell Labs. and Western Electric Company, becoming a telecommunications giant integrating operations, scientific research and development, and equipment manufacturing, with more than 1 million employees! ! !

Perhaps because of the butterfly effect, AT\u0026T was originally supposed to split up on New Year's Day this year, but now it has been postponed for more than a month.

On February 10, 1984, the U.S. Department of Justice forced AT\u0026T to split up in accordance with the Antitrust Act. AT\u0026T, which retained its original name, could only operate long-distance services. The 22 Bell Operating Companies (BOCs) owned by the original AT\u0026T were reorganized into 7 regional Bell Operating Companies. (RBOC), can only operate local business. The seven regional Bell operating companies are: Bell Pacific, Ameritech, Bell Southwestern, BellWest America, Bell Atlantic, BellSouth and Nynex.

At this moment, Li Zetian was frowning. After the AT\u0026T company was split, AT\u0026T, which retained its original name, owned US$34 billion in assets, and the remaining US$131 billion was divided among the seven regional Bell operating companies. However, Li Zetian was unable to spend so much money to acquire these small Bell companies.

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

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

"Why is this?" Li Zetian asked doubtfully. He also had a detailed understanding of the U.S. telecommunications industry. MCI was AT\u0026T's first competitor in the long-distance phone market. It laid microwave networks along highways and then connected them to the local cheap local telephone network. , it can replace AT\u0026T's long-distance phone service, and the cost is much lower. In 1976, MCI's sales revenue was only US$17 million, and its profit was only US$1.3 million. However, by 1983, its sales revenue had reached US$1 billion.

Dongfang Yuqin said: "MCI has been suing AT\u0026T, and now it is indeed successful, but the legal victory cannot be converted into a market victory!"

Li Zetian frowned and motioned Dongfang Yuqin to continue.

"After the split, AT\u0026amp;T will no longer be constrained. It 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 'Zi Bells' will enjoy the benefits. The access fees for long-distance and local calls have been significantly increased, so one of the results of the spin-off is that regional phone fees have increased, while long-distance fees have decreased, and cross-subsidies no longer exist!”

Li Zetian nodded, knowing why Dongfang Yuqin suggested that he acquire MCI. Obviously, MCI is facing more severe challenges at this moment and needs to introduce a large amount of funds. In addition, in theory, after the spin-off, AT\u0026T's old customers can freely choose other operator services, but the lock-in effect and inertia allow the vast majority of customers to continue to choose AT\u0026T.

However, although Dongfang Yuqin's suggestion is good, Li Zetian still needs to consider it carefully. With the popularity of IP phones and broadband, people replace long-distance calls through email, text messages and wireless. Moreover, the competition in the long-distance market is extremely fierce, and AT\u0026T's long-distance business is difficult to shake!

The reason why Li Zetian wants to acquire the telecommunications industry is to become a monopoly giant of Internet service providers. He can win at the starting point. For example, when a user dials up to access the Internet, a pop-up window recommends his own website or software, and he can easily obtain huge profits. User.

Therefore, Li Zetian pays more attention to telecommunications companies that operate local local phone services. Acquiring these companies not only strengthens one's own strength, but also curbs the expansion of competitors. If Li Zetian does not acquire these companies, then they will rent the cables to other companies for use.

Li Zetian hesitated for a week and still had not made a decision. The market value of MCI 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 that it would establish the first nationwide digital fiber optic network communication plan, which was completed in 1987.

"Which company in the future is United-Telecommunications that actually has plans for a digital optical fiber network?!" Li Zetian was very surprised. However, when he saw the Sprint product trademark, he realized that the company was Sprint, one of the three major telecommunications giants in the United States in the future. 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 acquiring MCI, it is better to acquire Sprint." Li Zetian said, and immediately went to the study to find out Sprint's information. After reading it, Li Zetian discovered that Sprint is a local telephone company that controls hundreds of telephone lines and is on the cutting edge. It is one step ahead in the development of network technology, and therefore has the first nationwide digital optical fiber network plan. Obviously, Sprint also plans 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 now preparing to build will bring huge profits to Sprint!

"Sprint has strong network technology reserves, not only has local business, but also plans to build a nationwide fiber optic network. Obviously this is the best acquisition target!" Li Zetian said with a smile, then walked to the wine cabinet and took out a bottle Red wine, enjoy the wine in a happy mood.

After a while, 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 that dared to challenge AT\u0026amp;T and finally won had huge development potential.

Li Zetian smiled and patted her shoulder 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 has exactly the technology and market I need!"

"Oh~" Dongfang Yuqin responded softly, lowering her head and blushing slightly. Because she had a history of hating men, she rarely had physical contact with men. The warmth of Li Zetian's palm on her shoulder seemed to give her a feeling of electric shock.

"Mr. Li, then I will give you your order now..." Dongfang Yuqin quickly "ran away".

"Well, go ahead!" Li Zetian responded immediately. At this time, he also realized that Dongfang Jade Qin cannot be touched...