Chapter 688： They are coming

Eric read the information that Chris had handed over and read it.

Compared with the telecommunications industry giant at-t, which has a market value of more than 80 billion in a year and a profit of more than 4 billion, the other two large telecom companies trying to enter the mobile communications market are far worse.

The predecessor was Bell Atlantic, which was dismembered from the original at-t in the 1984 telecom monopoly case. After ten years of development and integration, the current market value is 0 million, but in recent years it has been in a state of sluggish performance, last year. It was a loss of $ 734 million.

In comparison, the market value of non-Bell is only $10.5 billion, but its operating status is far better. In 1994, its annual profit reached 880 million. Perhaps it is because of this good performance that it is ambitious to think. To lay out the wireless communication network nationwide, so in the a, b segment license auction process crazy, and finally get the wireless spectrum license even exceeds the total of at-t and the two major telecom giants will also bear up to 15 The billions of dollars in spectrum licensing fees, just this expenditure, is equivalent to maintaining the company's net profit for two years in the current good operating conditions.

After reading the information, Eric also almost understands why Chris just said that it would not be impossible to pull into the dma camp.

Although these two companies are considered to be giants in the US telecommunications industry, they are far from being comparable to the big brother at-t.

Because of several mergers and acquisitions in recent years, there have been a huge debt of 8.9 billion US dollars, equivalent to 38% of the company's market value. This is the main reason for the continuous losses in recent years. This spectrum license auction has increased for it. A debt expenditure of around $600 million. And it wants to complete the construction and successful operation of the mobile communication network, the debt ratio is likely to exceed 50% in the next few years.

The situation is not necessarily good, although its original operating conditions are excellent. But this company's expansion in the field of mobile communications is too large, the $1.5 billion in spectrum license spending and the huge amount of money needed to build a nationwide mobile communications network in the next few years. It may even make it go on the road of continuous losses for a long time in the future.

The att of wealth can not hesitate to make the decision to choose gsm technology as its mobile communication network standard, regardless of factors such as gsm may be eliminated by more advanced third-generation communication technology in the future. However, the financial situation is very tight, but it is necessary to carefully consider the cost factors of the technical standards they choose in the construction of the communication network. Although dma technology has not been commercially available for the time being, many experimental evidences prove that dma has a huge advantage over second-generation digital communication technologies such as gsm in terms of spectrum capacity and network construction cost.

Chris patiently waited for Eric to read the information and said: "In addition to the factors of the dma itself, if the firefly expresses interest in the telecommunications industry and publicly spends Qualcomm, it is very likely to tilt to the dma because The debt burden of the two companies has further expanded. Whether it is debt financing or equity financing, the difficulty of obtaining funds will be greatly improved, and the fireflies have the huge funds they are extremely eager for, even if we do not The two companies provide direct financial support, and they also tend to work with Qualcomm, which is backed by the power of Firefly."

Eric nodded, leaning his body against the sofa, his fingers rubbing on the information in his hand, but he had other thoughts in his heart.

In any country, the telecommunications industry is in the monopoly of some giants, if not the famous telecom antitrust case in 1984. At-t has grown to the present, it will definitely be the company with the highest market value in the United States, even if it was split off seven subsidiaries. At this time, the market value of more than 80 billion US dollars at-t is still the top five corporate giants in the United States, and the number one GE's market value is only more than 90 billion US dollars.

Although in the United States, this monopoly of at-t did not occur under administrative support, and even at-t wants to expand further, it will be subject to the federal anti-monopoly department, but even after a large-scale demolition The actual monopoly of at-t is also difficult to break because, after a hundred years of development, at-t has a complete national fixed-line telephone communication network. This network is not only expensive, but also not easily built in three or five years. Many emerging companies want to develop their own telecommunications services, and most of the time they even need to rent communication lines from at-t. In this case, it is basically impossible for latecomers to catch up or even surpass at-t.

However, in the past few decades, there have been opportunities for embarrassment. With the arrival of the new technology wave, there have been two important opportunities to break the industry pattern, the rise of the mobile communication industry and the network broadband industry. At present, these two industries are in their infancy. Except for Eric, there is no one who knows what kind of scale these two industries can develop in the future, but Eric is very clear, twenty years later. Any one of the two major industries, mobile communications and network broadband, will far surpass the fixed-telephone business at which At-t will maintain its monopoly position. Even before Eric’s rebirth, many families are no longer Fixed telephones are installed, but mobile phones and broadband have become a necessity in people's lives.

Although the recent license auction was delayed because of the reason that some absurd lawsuits were delayed, indicating that latecomers want to enter the telecommunications industry, there are still industry barriers that emphasize heavy or dark or dark. But these barriers are not a big deal for Eric, who already has a lot of capital in his hands. In some online game terminology, he doesn’t have to start from scratch like the novice village trumpet, but can save money. A good high-level account directly enjoys the game, and at this time he has two good 'game accounts' in his hand.

Eric knows some of the future developments of the two companies and that at-t will be the Big Three of the US telecommunications industry in the future. He suspects that this situation in the future should be three companies especially and now on mobile communications. The sparing efforts have been made, and at this time, other companies in the United States with similar strengths, such as Southern Bell and Northern Telecom, should have missed this important industrial revolution and gradually eliminated or been annexed by other companies. .

Moreover, because the payment of spectrum license license fees and the construction of a nationwide mobile communication network require huge funds, it is now the best time to invest in the two companies, Eric knows that this should be the last moment, missed perhaps It’s hard to have another chance. Because of the arrival of the new technology wave, when the Nasdaq index starts to soar in the next few years, it will only need to issue a small amount of stocks to the circulation market to raise enough development funds. Therefore, it is impossible to introduce the major shareholders who change the company's shareholding pattern, such as fireflies. Even if they are willing, the fireflies will not be able to get enough funds in the case of the two companies' market value soaring.

Chris saw Eric suddenly fell into thinking, patiently waiting for a while before asking: "Eric, what are you thinking?"

Eric returned to the world and raised the information in his hands. He asked directly: "Chris, do you think it is easier for the two companies to accept our investment?"

Chris raised his eyebrows and just about to talk. The talkers near the two screamed a few times. Eric got up and pressed the call button and it sounded. The voice of the manor guard came out: "William Mr. Mr., Mr. Jacob and Mr. Salmaci have arrived.” (To be continued.)