"Project Pronto," as the initiative will be known, will generate annual savings of $1.5 billion by 2004, SBC said in an investor briefing posted late today on its Internet site. Capital and expense savings will pay for Project Pronto, which will generate $3.5 billion in new revenue by 2004.
SBC and other local phone companies are racing to sell high-speed Internet access and other services to consumers and businesses as demand for data soars. It's also looking to compete against AT&T, which has bet more than $100 billion on offering high-speed Internet and other services using cable networks.
San Antonio-based SBC completed its $80.6 billion acquisition of local phone company Ameritech last week. The combined company offers service to two-thirds of the U.S. population and will have annual revenue of $46 billion.
The Federal Communications Commission approved the SBC-Ameritech union with conditions aimed at increasing competition in both companies' regions, including the stipulation that SBC enter 30 new markets in the next 30 months. The companies agreed to pay more than $1.2 billion in penalties if they fail to meet the conditions.
The company declined to comment and analysts said they'd been notified that SBC plans a briefing on its broadband strategy Monday at 9 a.m. in New York City.
Chief executive Edward Whitacre Jr. and chief financial officer Donald Kiernan are to attend.
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