[comp.dcom.telecom] Sprint Cat Responds to ATT Cat

eli@pws.bull.com (Steve Elias) (09/29/90)

[Sprint cat is responding to ATT cat's allegation that Sprint and GTE
do the same kind of deals as ATT & Western Electric.]

First of all, we were not owned by GTE (US SPRINT that is) we were
owned by two companies, GTE and Unitel.  In case you don't read the
papers, Unitel bought out most of GTE back in August,1988. They also
have an option to buy the rest whenever they want (currently, Unitel
has 80.1%).  This buyout occurred pretty much before tariff 12 was
conceived.

Second, how many people to you know that have GTE PBX's??  They're
the biggest piece of junk PBX's!  Last time I checked, ATT had 26-28%
of the market, the closest competitors were Northern (who we do try to
team up with against tariff 12 bids, and NEC, but neither are quite as
dominant as ATT in the equipment market.  GTE doesn't really even get
an honorable mention.  Even so, the fact that they are all DIFFERENT
COMPANIES counts for a hell of a lot.  It's much harder to have a one
vendor solution when you have more than one company involved.  That's
the point most of the time behind tariff 12.

Third, if it isn't already clear, by the time tariff 12 starting to
become a threat, GTE was completely divorced from day to day
operations of US Sprint.  It is incredibly difficult to arrange a bulk
services agreement for one customer that involves two companies, the
services of which one, will be used to subsidize the price of another.
In other words, Northern is not going to go into a deal unless they
can make a reasonable return on investment.  GTE equipment isnt even
in the running so it's not even considered.


(forwarded by)
eli