|
IBM urges deregulation
|
 |
October 11, 1999: 8:01 a.m. ET
Gerstner: Europe needs to liberalize telecom markets
|
GENEVA (CNNfn) - IBM chairman Lou Gerstner has urged Europe to deregulate its telecom industry, or face being left behind in the global Internet revolution.
Speaking at Telecom 99 in Geneva, Switzerland, the feisty Gerstner said that liberalization of government-controlled telecom markets would enable Europe to "move forward aggressively."
However, Gerstner, credited with coining the term "e-business," predicted that Europe would play a major role in that development, with its share of Web transactions rising to 33 percent by 2003, from just 11 percent currently
In an interview with CNN Sunday at Telecom 99, the global communications conference, Gerstner had dire warnings for those companies and institutions who don't move with the times.
"The PC era is over," he maintained, although he pointed out there will be some 600 million PCs in existence in 2003. "The development of new thinking is moving to the network, not to the PC."
Gerstner also spoke Sunday to an enthralled audience of industry players, making several trademark swipes at rivals in the computing industry. He warned that computer companies which acquire telecom assets risk competing with their own customers, and damaging their core businesses.
Although Gerstner was critical of the telecom industry's record in uncoiling the influence of government, he pointed out the industry had taken the lead over the computer industry when it comes to developing open technology available to all players.
"E-business depends on open standards of technology…those holding on to proprietary technology are not going to win," he warned, in what appeared a clear dig at rival Microsoft (MSFT).
His remarks came as IBM (IBM) itself has come under some pressure, with the shares falling to their lowest level since June Friday, following an analyst downgrade.
But Gerstner was bullish about the prospects for the company, claiming that its position "at the top of the value chain" left it well placed to reap the benefits of the Internet revolution.
"We're four to five years into a new economy that will mature over 25 years," he told the packed auditorium.
IBM stock closed 2-3/4 lower Friday in New York at 113-1/2.
|
|
|
|
|
|
IBM
|
Note: Pages will open in a new browser window
External sites are not endorsed by CNNmoney
|
|
|
|
 |
|
