Chapter 256: The Collapse of the Telecom Giant

The purpose of the Flamingo company's advance release is naturally to crack down on Nintendo and deter third-party game development companies.

In the next year, Nintendo's FC consoles may not sell well.

In addition to not having the support of a third-party game development company, even the player users will not buy FC.

Think about it, Flamingo announced that within a year, the product can be "trade-in", which means that from now on, buy the Flamingo-1 game console, then when the Flamingo company releases a new generation of game consoles this year, you can spend a small amount of money to trade in the old for the new, this kind of big discount, why not?

As for Nintendo's FC, ho-care?

……

……

After Li Zetian dealt with the affairs of Nintendo, he turned his attention to AT&T, and only told Nolan Bushnell to pay attention to Nintendo's development, but if there were signs of a rise, he would immediately notify him.

AT&T's full name is AT&T, which can be said to be the largest company in the United States, with $165 billion in fixed assets, monopolizing more than 95% of the long-distance telecommunications business and more than 80% of the local telephone business in the United States!!

Perhaps because of the butterfly effect, AT&T was originally to be split 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&T to split under the Antitrust Act, and AT&T, which retained its original name, could only operate long-distance services, and the 22 Bell Operating Companies (BOCs) to which the original AT&T belonged were reorganized into 7 Regional Bell Operating Companies (RBOCs), which could only operate local businesses. The seven regional Bell operating companies are: Bell Pacific Inc., Ameritech Inc., Bell Southwest, Bell West USA, Bell Atlantic, Bell Southern, and Nynex.

At this moment, Li Zetian frowned, after the split of AT&T, AT&T, which retained its original name, owned $34 billion in assets, and the remaining $131 billion was divided by seven regional Bell operating companies. However, Li Zetian couldn't come up with so much money to buy these little Bell companies for a while, it's like a beautiful woman stripped naked in front of him, but he just couldn't get hard, can this pain be experienced?

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

Dongfang Yuqin suggested: "Mr· Li, I propose to acquire MCI. ”

"Why is that?" asked Li Zetian suspiciously. He also had a detailed look at the U.S. telecommunications industry, and MCI was AT&T's first competitor in the long-distance phone market, which could replace AT&T's long-distance service at a much lower cost by laying microwave networks along highways and then connecting to the local cheap local telephone network. In 1976, MCI's sales were only $17 million and profits were only $1.3 million, but by 1983, it had reached $1 billion.

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

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

In addition, with the bottleneck advantage of the 'last mile', the 'sub-bells' have greatly increased the access fee for long-distance local calls, so one of the results of the spin-off is that the regional phone bill has increased, and the long-distance phone has been reduced, and the cross-subsidy no longer exists!"

Li Zetian nodded, and understood why Dongfang Yuqin suggested that he acquire MCI. Obviously, MCI is facing a more serious challenge at the moment, and it needs to bring in a lot of capital. In addition, theoretically speaking, after the spin-off, AT&T's existing customers can freely choose other carrier services, but the lock-in effect and inertia make the vast majority of customers continue to choose AT&T.

However, although Dongfang Yuqin's suggestion is good, Li Zetian still has to think about it carefully. With the proliferation of IP telephony and broadband, people are replacing long-distance calls via email, SMS and wireless. Moreover, the competition in the long-distance market is extremely fierce, and AT&T'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, and to win at the starting point, for example, when users dial up to surf the Internet, they can easily get a huge number of users by recommending their own websites or software and other things.

Therefore, Li Zetian attaches more importance to the telecommunications companies that operate the local local telephone business. Buying these companies is not only to strengthen one's own strength, but also to curb the expansion of competitors. If Li Zetian doesn't buy these companies, then they will lease the cables to other companies for use.

The company's market value is not low, this acquisition is very important, and Li Zetian is thinking about whether it is worth it.

At this time, Li Zetian saw a news item on television, which said that United-Telecommunications announced that it would build the first nationwide digital fiber optic network communication plan, which was completed in 1987.

"Which company is United-Telecommunications in the future, and actually has a plan for a digital optical fiber 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 giants of telecommunications in the United States 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 for the development, engineering, and promotion of cutting-edge network technology in the times, and also plays a very important role in the development of the Internet, and its Tier-1 IP network is an important part of the Internet backbone network.

"Instead of buying MCI, we should buy Sprint. Li Zetian said, immediately walked to the study, to find out the information of Sprint, after reading, Li Zetian found that Sprint is a local telephone company, mastered hundreds of telephone lines, in the development of cutting-edge network technology one step ahead, and therefore has the first national digital optical fiber network plan. Apparently, the management may not have known that the rise of the Internet would be an unexpected explosive growth market, and that the nationwide digital fiber optic network they are now building will bring huge profits to Sprint!

"Sprint has a strong network technology reserve, and it has both local business and quasi-national optical fiber network, so it is obvious that this is the best acquisition target!" Li Zetian said with a smile, and then walked to the wine cabinet, took out a bottle of red wine, and tasted the wine happily.

After a while, Dongfang Yuqin came to the study, and Li Zetian said to her with a smile: "I have decided to acquire United-Telecommunications!"

Dongfang Yuqin was stunned, in her opinion, a company like MCI that dared to argue with AT&T and won in the end has great development potential.

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

"Oh~" Dongfang Yuqin responded softly, and couldn't help lowering her head, her little face slightly red. Because she had a misogynistic illness before, she rarely had physical contact with men, and the temperature of Li Zetian's palm on her shoulder seemed to make her feel like an electric shock.

“Mr· Li, then I'll go and give your order now......" Dongfang Yuqin hurriedly "fled into the wilderness".

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