Cable-phone link is promising gamble: US West move puts pressure on its rivals

Article Abstract:

US West Inc acquires 25.5 percent of Time Warner Inc's entertainment division and will upgrade Time Warner's cable networks for multimedia services. This action will increase competition among local telephone companies. Technological advances are merging the competitive cable and telephone industries, and long distance companies are beginning to rely on nascent fiber-optic and cable businesses instead of more expensive local telephone companies. US West will spend $1 billion to upgrade Time Warner's networks and $1.5 billion to pay off its debt. Both companies will manage the networks. The joint effort will benefit from Time Warner's entertainment library and will experience few regulatory barriers. AT&T may join forces with Tele-Communications Inc and has already agreed to buy 33 percent of McCaw Cellular Communications Inc. In addition, Southwestern Bell Corp may team up with Cox Enterprises Inc.

Radiotelephone communications, Motion picture & video production, Periodicals, Mergers, acquisitions and divestments, Internet services, Time Warner Inc., Cable television, U S WEST Inc., USW, TWX, Multimedia systems, Cooperative Agreements, Cable Television/Data Services, Multimedia Technology

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Clear message: MCI-BT tie is seen setting off a battle in communications; it will increase competition, trim prices and expand services around the world: a new challenge for AT&T

Article Abstract:

British Telecommunications PLC will invest $4.3 billion for a 20 percent stake in MCI Communications Corp. The investment will place the BT-MCI alliance into direct competition with AT&T, which intends to provide communications services for multinational corporations. Only a week before the BT-MCI deal was announced, AT&T had said it would cooperate with Japan's Kokusai Denshin Denwa and Singapore Telecom to provide worldwide communications services. As a consequence of increased competition, governments are likely to open their markets to outside investors and will allow alliances with their national carriers.

Management, Telephone companies, Investments, British Telecommunications PLC, MCI Communications Corp., International markets, International communication, Telecommunications, Industry Analysis, Outlook, Telephone Company, International Communications, World Market

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AT&T, 2 Bells plan to upgrade cellular systems

Article Abstract:

AT and T, Ameritech and Nynex Corp are all planning to use technology from Qualcomm Inc of San Diego to create personal communications networks. The telephone companies are planning to establish personal communications networks that incorporate lightweight, pocket-sized cellular telephones that operate on frequencies different than normal cellular telephones. Qualcomm is a pioneer in a technology called Code Division Multiple Access (CDMA). CDMA enables up to 20 times more calls to be handled than traditional cellular systems, which should help alleviate crowded frequencies in major urban areas.

Radio & TV communications equipment, Usage, Product information, Services, Cellular telephones, Wireless telephones, T, Product development, American Telephone and Telegraph Co., Qualcomm Inc., Cellular Radio, Mobile Phones, American Information Technologies Corp., NYNEX Corp., NYN, AIT

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