Merged with duplicate record 10026.1/442 on 01.02.2017 by CS (TIS)The focus of this thesis is an investigation of the post-privatisation performance of the
international telecoms sector. Firstly, the general hypothesis (1) of this thesis has been
pursued, which states that the privatised telecoms companies perform differently from their
non-privatised (private) counterparts. Several tests were applied; namely, ANOVA, and
multiple regression analysis. The principal finding was that there was no significant
difference in performance.
Secondly, the next hypothesis (2) states that the financial performance of each company is
positively related to that of the other two selected companies. For this purpose, multiple
regression tests were performed to investigate any inter-relationships between BT, AT&T
and NTT. It was found that the performance of each was affected by the other companies.
Thirdly, the next hypothesis (3) states that, in a global market, company performance is
related more closely to the sector than to each respective stock market. It was found that
performance was affected more significantly by their respective stock markets than by
competitor global players. Fourthly, the next hypothesis (4) states that, in terms of
competitive advantage, NTT exhibits through time a superior position compared with BT
and AT&T on account of its monopoly position. It was found that monopoly was not an
issue. Fifthly, the next hypothesis (5) states that, of the three global players, AT&T is more
adversely affected in its competitive advantage on account of its having a weaker
monopoly position. It was found that AT&T had a competitive advantage from 1990 to
1993. BT took the lead until 2000, then NTT forged ahead after the Japanese market
started to become more liberalised in terms of competition. Original tests were performed
regarding the changing degree of competitive advantage of these three companies. This
required an evaluation of the relationship between competitive advantage and priceearnings
inverses, capital asset pricing model derived rates of return and dividend-based
rates of return. A random walk with drift model was also applied, in order to evaluate
forecasted trends.
Finally, BT's short-term debt-financing problems were examined. To overcome these
difficulties, BT raised funds via a rights issue, selling off Yell and other profitable assets
and de-merged their mobile company. It was found that the strategic risk probability of a
failed rights issue was quite small.State of Qatar- Ministry of Education, Qata