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"Our investment in the company, which owns substantial broadband network capacity, is in line with our vision to be a leading global telecommunications player".
Hobbled by debt, most of it run up financing new digital mobile phone services that have yet to pay off, British Telecommunications has set aside ambitions of becoming a global telecommunications player.
"The market likes this deal because it fits in nicely with AT&Ts strategy to become a global telecommunications player," says Ehrenkrantz King Nussbaums Hyman, who adds that he recommends the stock to his clients.
In the Australian market, Netflix will go head-to-head with Presto Entertainment, which is owned by local TV network Channel 7 and pay TV firm Foxtel, (itself a joint venture owned by Rupert Murdoch and Australia's dominant telecommunications player, Telstra).
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Equant has talked with various telecommunications players over the summer including France Telecom, Deutsche Telekom and Global Crossing, the telecommunications company based in Hamilton, Bermuda.
A chief concern is that Vonage, which helped popularize Internet telephone calling, faces brutal competitive pressure from well-heeled and bigger telecommunications players.
Other big telecommunications players, including Hutchison Whampoa Ltd. of Hong Kong and Deutsche Telekom A.G., simply pulled out of the Swiss auction in advance.
And while major telecommunications players already have footholds in Middle Eastern countries -- even neighboring war-torn Iraq -- Iran, the Mideast's second-largest country after Egypt, is up for grabs.
After months of negotiations, the antitrust review of the America Online and Time Warner merger now enters an endgame that, no matter its outcome, seems certain to set the government's competition policies for the largest Internet and telecommunications players for years to come.
There is one major problem however: The biggest telecommunications players come from an entirely different mindset than the high-growth, go-go, data networking firms.
Cleland is also an anti-net neutrality activist who has backed the position of the existing telecommunications players in testimony to a Congressional hearing; simply as with any analyst or lobbyist, he makes a case that is usually in line with the concerns or beliefs of the industry that backs him.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com