[13563] in North American Network Operators' Group
Re: MCI Accepts Worldcom's Bid? ; charset=us-ascii
daemon@ATHENA.MIT.EDU (Jeffrey C. Ollie)
Mon Nov 10 20:15:19 1997
Date: Mon, 10 Nov 1997 19:08:16 -0600
From: "Jeffrey C. Ollie" <jeff@ollie.clive.ia.us>
To: Nanog <nanog@merit.edu>
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Eric M. Carroll wrote:
>
> > Pessimist Nathan? I seems to me that it would be out of character for
> > Worldcom to integrate MCI. They didn't with MFS, ANS or UUNet. Different
> > market targets?
>
> If you do not integrate them, then you do not get the economies of scale.
> Thus your stock price fails to rise, and shareholders get annoyed, since
> that is what they are approving the deal based on.
I've been following (and occasionally participating in) the discussion
on the "Appraising Microsoft" mailing list. Microsoft (I hope) has
nothing to do with this but I've gleaned some interesting tidbits out
of the discussion regarding anti-trust and very large companies. It
would seem that quite a bit of research indicates that increasing scale
past a certain point does not give you any additional economies. For
more information, see:
<http://webpages.metrolink.net/~cmueller/>
especially the antitrust overview.
> And if you think the backbone is tough, just give a thought to all the
> different provisioning systems running around. You will need a very
> sophisticated system to deal with all the "legacy" gear (for some
> definition of legacy).
Definitely not a job that I'd want...
Jeff
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