Editing BT Group (section)

=== Attempted global alliances ===
==== MCI ====
In June 1994  BT and [[MCI Communications]] launched [[Concert Communications Services]] which was a $1 billion joint venture between the two companies. Its aim was to build a network which would provide easy global connectivity to multinational corporations.<ref>{{Cite web|url=http://www.washingtontechnology.com/news/9_14/news/9537-1.html|archiveurl=https://web.archive.org/web/20060607121754/http://www.washingtontechnology.com/news/9_14/news/9537-1.html|url-status=dead|title=MCI and British Telecom are getting a concerted jump on the competition but is being first enough?<!-- Bot generated title --> 27 October 1994|archivedate=7 June 2006}}</ref>

This alliance progressed further on 3 November 1996 when the two companies announced that they had agreed to a merger, creating a global telecommunications company called Concert plc. The proposal gained approval from the [[European Commission]], the [[US Department of Justice]], and the [[US Federal Communications Commission]] and looked set to proceed.<ref>{{cite web|url=http://ec.europa.eu/competition/mergers/cases/decisions/m856_19970514_600_en.pdf|title=Commission Decision of 14 May 1997 declaring a concentration to be compatible with the common market and the functioning of the EEA Agreement|publisher=European Commission|access-date=2 March 2019|archive-url=https://web.archive.org/web/20190306042701/http://ec.europa.eu/competition/mergers/cases/decisions/m856_19970514_600_en.pdf|archive-date=6 March 2019|url-status=live}}</ref>

However, in light of pressure from investors reacting to the slide in BT's share price on the [[London Stock Exchange]], BT reduced its bid price for MCI, releasing MCI from its exclusivity clause and allowing it to speak to other interested parties.<ref name="FindArticles.com - CBSi">{{cite web|url=http://findarticles.com/?noadc=1|title=FindArticles.com – CBSi|website=findarticles.com|access-date=14 March 2019|archive-url=https://web.archive.org/web/20040814080003/http://www.findarticles.com/p/articles/mi_m0FCO/is_1_5/ai_101337651|archive-date=14 August 2004|url-status=live}}</ref> On 1 October 1997, [[Worldcom]] made a rival bid for MCI which was followed by a counter-bid from [[GTE]].<ref>{{cite web|url=https://www.nytimes.com/|title=Breaking News, World News & Multimedia|website=[[The New York Times]]|access-date=14 March 2019|archive-url=https://web.archive.org/web/20140108144641/http://www.nytimes.com/|archive-date=8 January 2014|url-status=live}}</ref>

BT sold its stake in MCI to Worldcom in 1998 for £4,159 million. As part of the deal, BT also bought out from MCI its 24.9% interest in Concert Communications, thereby making Concert a wholly owned part of BT.<ref>{{cite magazine|url=https://money.cnn.com/1997/11/10/deals/worldcomwins/|title=WorldCom wins MCI|date=10 November 1997|magazine=Money|access-date=2 March 2019|archive-url=https://web.archive.org/web/20190306044741/https://money.cnn.com/1997/11/10/deals/worldcomwins/|archive-date=6 March 2019|url-status=live}}</ref>

The reaction to the failure of the deal in the City of London was critical of then Chairman [[Iain Vallance]] and CEO [[Peter Bonfield]], and the lack of confidence from the failed merger led to their removal.<ref>{{cite web|url=http://www.aurorawdc.com/mciworldcom.htm|title=MCI and WorldCom – How British Telecom Fell Short at Competitive Intelligence – AuroraWDC.com Competitive Intelligence, Knowledge Management, Market Research, Competitor Analysis|website=aurorawdc.com|access-date=14 March 2019|archive-url=https://web.archive.org/web/20160303172412/http://www.aurorawdc.com/mciworldcom.htm|archive-date=3 March 2016|url-status=live}}</ref>

==== AT&T ====
As BT owned Concert in 1994, and still wanted access to the North American market, it needed a new partner. An [[AT&T]]/BT option had been mooted in the past, but stopped on regulatory grounds due to their individual virtual monopolies in their home markets. By 1996, this had receded to the point where a deal was possible, and a deal was consummated in 1998.<ref>{{cite news|url=https://www.nytimes.com/1998/07/27/business/at-t-and-british-telecom-merge-overseas-operations.html|title=AT&T and British Telecom Merge Overseas Operations|date=27 July 1998|newspaper=New York Times|access-date=2 March 2019|archive-url=https://web.archive.org/web/20190306044826/https://www.nytimes.com/1998/07/27/business/at-t-and-british-telecom-merge-overseas-operations.html|archive-date=6 March 2019|url-status=live}}</ref>

At its height, the Concert managed network was extensive. Although Concert continued signing customers, its rate of revenue growth slowed, so that in 1999 David Dorman was made CEO with a brief to revive it.<ref>{{cite magazine|url=https://money.cnn.com/2000/11/28/technology/att/|title=AT&T names president|date=28 November 2000|magazine=Money|access-date=2 March 2019|archive-url=https://web.archive.org/web/20190306043455/https://money.cnn.com/2000/11/28/technology/att/|archive-date=6 March 2019|url-status=live}}</ref>

In late 2000, the BT and AT&T boards fell-out, partly due to each partner's excess debt and the resulting board room clear-outs, partly due to Concert's extensive annual losses. AT&T recognized that Concert was a threat to its ambitions if left intact, and so negotiated a deal where Concert was split in two in 2001: North America and Eastern Asia went to AT&T, the rest of the world and $400M to BT. BT's remaining Concert assets were merged into its BT Ignite, later BT Global Services group.<ref>{{cite news|url=https://www.theguardian.com/media/2002/may/13/newmedia.business|title=2,000 jobs go as BT's Ignite seeks to stem losses|date=13 May 2002|newspaper=The Guardian|access-date=2 March 2019|archive-url=https://web.archive.org/web/20190306044151/https://www.theguardian.com/media/2002/may/13/newmedia.business|archive-date=6 March 2019|url-status=live}}</ref>