Peter Curwen

Survival of the fittest: formation and development of international alliances in telecommunications

Examines global aspirations of operators that have chosen to increase their global reach via a process of take‐over rather then joint venture, considering their prospects. Discusses recent cell phone trends and concludes that it is difficult to pick winners at this point in history as their industry structure changes on an almost daily basis.

Assessing the meltdown in the telecommunications sector

The trading difficulties affecting the telecommunications sector have continued to deteriorate over the past year and a half. The purpose of this article is to update the outlook as presented in previous articles on the same general theme. What this latest version demonstrates is that there has been a widespread write‐down in the capital values of telecommunications companies of all kinds on a scale that has few, if any equals in other sectors. The article analyses the reasons for this phenomenon, concentrating upon the issue of indebtedness. Data are presented on a variety of indicators which suggest that the sector is mired in a spiral of debt, credit downgrades and bankruptcy. This has implications for the structure of the sector in the medium term, but consolidation must await signs of an upturn in the fortunes of companies in a position to act as predators rather than prey.

The End of the Line for British Rail

The privatization of British Rail is now effectively complete, although criticisms directed at the outcome are extensive. This article examines the National Audit Office’s work on rail privatization, and looks at problems highlighted by various pressure groups. It is argued that the new system has been going through its teething stages, and that many of the most obvious deficiencies are being addressed. The longer-term outlook is therefore reasonably positive.

Do free-market governments create crisis-ridden societies?

The paper is concerned with the potential or actual impact that free-market governmental principles and policies might have, or might have had, in helping to create a more crisis-prone world. It is concerned with organizationally-induced crises where organizations and their environment interact to create disasters. The nature of the crisis-prone organization is discussed in the context of the relevant management literature. It is argued that the disastrous interaction of such an organization with its environment is promoted by a laisser-faire attitude on the part of the authorities. This is illustrated in the context of two recent British disasters involving the Kings Cross Underground fire and the sinking of the Herald of Free Enterprise.

Telcos take over the world

Examines data demonstrating how the telecoms industry is affected by takeovers, mergers and stake acquisition. Catalogues the ability of companies to use cash instead of stock in all the highest capitalized companies. Explains happenings, reasons and long‐term consequences for the global economy with regard to industrial restructuring, as it appears telecoms companies are taking the world over.

Telecom Italia takeovers: Chinese boxing clever

During the recent past there have been two successive and successful takeovers of Telecom Italia, in both cases by other Italian companies and employing the device of “Chinese boxes” to secure control without the need either to hold a majority stake in the acquired company or to pay much regard to the interests of minority shareholders. This raises into question the extent to which “Anglo‐Saxon” attitudes in financial markets are making inroads in continental Europe; the willingness of continental European governments to permit foreigners to acquire control of the “commanding heights” of their economies; and the manner in which the European telecommunications sector is being restructured.

Can European media empires survive? The rise and fall of the House of Kirch

Although bankruptcies in the TMT sector are flowing thick and fast, the collapse of the media empire built up by Leo Kirch over a 42‐year period is arguably the most dramatic. Protected by its links with German business and financial institutions as well as politicians, the KirchGruppe appeared to be impervious to the periodic downturns in business conditions. However, not only did the “German” way of doing business behind closed doors come under increasing pressure by the end of the 1990s, but the KirchGruppe acquired enemies such as the Springer family as well as shareholders, such as Rupert Murdoch and Silvio Berlusconi, who were intent upon expanding their own empires. Because he assumed that his empire was well‐protected via his associates, Leo Kirch took excessive risks, not least the issuance of put options which, if exercised, could bring down his empire – which in the event was what transpired earlier this year.

Spectrum property rights

Posits when someone gets a spectrum licence, they are almost guaranteed that the market structure of the service provided will be frozen for a certain period. Suggest a new system based on property rights and spectrum trading would challenge all this. Concludes that a new regime based on property rights and spectrum trade is within reach. Contends that in some frequency bands, spectrum is the only bottleneck that impedes the entry of new operators.

Hey presto! how to turn monopoly money into real money with a wave of the magic merger wand

Sets out to debate the declaration “contest is king” in the context of the bid for Mannesmann by Vodafone AirTouch, discussing the somewhat imprecise concepts of convergence and multimedia. Concentrates also, on a previously unanswered question – with regard to rate of exchange between a cyberspace based company and a real economy company.

EuroDisney: the mouse that roared (not!)

Examines the history of the ill‐fated EuroDisney theme park. Analyses the reasons for its failure to attract customers and to meet financial projections. Questions whether Walt Disney has lost its touch. Assesses the future prospects for the park. Provides a case study of culture shock and emphasizes the difficulties of exporting successful ideas to other cultures.