By Network World Staff
Network World, 12/25/00

SBC Communications is perhaps best known for its appetite for acquisitions. Since the Telecommunications Act was passed in 1996, SBC has gobbled up several competitors including SNET, Cellular One and fellow regional Bell operating companies Ameritech and Pacific Bell. The year 2000 saw SBC consolidate those acquisitions and launch a variety of new services.

SBC's highest profile initiative is Project Pronto, a three-year, $6 billion undertaking to replace residential copper subloops with fiber feeders. Pending regulatory approval, SBC will use residential gateways, smaller than typical central offices, to roll out DSL services to a broader audience than reachable via the existing copper plant (see story, page 65). Through Pronto, SBC also will install a core ATM network for delivery of voice and data services.

While SBC awaits a decision from the Federal Communications Commission on Project Pronto, it proceeds aggressively on other fronts. This year, it began offering long-distance services in Texas; set up switches in Boston, Miami and Seattle to operate as an out-of-region competitive local exchange carrier; and joined with BellSouth to form Cingular, a joint wireless venture that will serve 19 million customers, second only to Verizon's 24 million wireless subscribers.

SBC currently provisions approximately 61 million lines in 13 states and has a market capitalization of more than $192 billion. The company provides local service in California, Illinois, parts of New York and Texas -- all revenue-rich territories. Revenue for the third quarter 2000, which ended Sept. 30, was up 8% over the same period in 1999, to $13.5 billion. Revenue is tracking to top $50 billion for fiscal year 2000, and CEO Ed Whitacre is forecasting double-digit revenue growth for 2001.

SBC's biggest challenge in the year ahead will be to ensure it offers adequate service quality in all its regions -- particularly those in former Ameritech territory. The FCC and public utility commissions in the former Ameritech states have expressed concerns that SBC is not serving the region adequately.

SBC vendor profile
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