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Telco could see revenue dip as influence rises
If energy giant Chevron Corp. goes ahead with plans to acquire Texaco Inc. in a proposed $42 billion deal, the company with the highest stake in the game on the information technology side might be AT&T Corp.
Industry observers said both petroleum companies have huge global networks that reach many of the same oilrich areas, and both have AT&T as their primary telecommunications provider. At a time when the entire oil and energy industry is reducing cost structures through mergers, combining global-area networks would represent significant IT cost savings.
A Chevron/Texaco merger would be good news and bad news for AT&T, said Liza Henderson, an analyst at TeleChoice Inc., a Boston-based telecommunications consultancy. Chevron and Texaco can potentially negotiate higher discounts, she said, "but it also...