Bell Atlantic to drop AT&T in video project

Article Abstract:

Bell Atlantic Corp will announce that it will drop AT and T as the lead systems integrator in its multi-billion dollar interactive services project because of disagreements over contract terms. The project will create an interactive video network serving seven million homes by 2000. The announcement is a blow to AT and T because it had expected to receive a significant amount of the $5 billion project for equipment sales. Bell Atlantic will still use AT and T equipment for the system's construction, but the total will be far lower. AT and T is also hurt because it has used its lead in the project as a marketing tool to promote its interactive video system expertise. The two companies could not agree on contract points such as price, delivery schedules and technology. Also, Bell Atlantic fears that it will not gain valuable systems integration experience if it let AT and T take the primary role.

Product development, T, Telecommunications equipment industry, Bell Atlantic Corp., BEL, American Telephone and Telegraph Co., Cooperative agreement for product development, Alliances and partnerships, Interactive video systems

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Disney and 3 Bells forming video venture

Article Abstract:

The Walt Disney Co, Ameritech, SBC Commuications and Bell South are planning to form a joint venture that will deliver video programming over telephone lines. The companies intend to spend $500 million over five years to develop and distribute interactive and entertainment programming for the Midwest and Southern US regions. The announcement of the joint venture has been expected since Aug 1994 but does not disclose much information about the structure or financial details of the deal. The companies are now searching for a chief executive to lead the newly-formed company and industry analysts thought that the appointment would be part of the formal announcement of the venture. The telecommunications companies have not yet determined what common software operating system they will use or when they will upgrade their networks to the fiber optics needed to offer the services.

Telecommunications services industry, Telecommunications industry, Internet services, Cable television, Company joint venture, Cable television/data services

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Three Baby Bells, Disney may link up to market and deliver video programs

Article Abstract:

Walt Disney Co, BellSouth Corp, Ameritech Corp and SBC Communications Inc are negotiating with each other to establish an interactive-television joint venture, which would develop and deliver video programming to consumers. Each company would contribute funds up to a combined $500 million over the next five years. Details over who would contribute what are still being negotiated. The Baby Bells want to include Disney because it can provide expertise in entertainment development. The Bells offer combined access to over 50 million customers in 19 states. The Bells would purchase programming from the joint venture. The venture will also develop the navigation system, which is critical for interactive video networks. Ventures between regional Bell companies and entertainment companies have become more common.

Television equipment industry, Digital television, Joint Ventures

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