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U.S. lag in phone trade seen

Article Abstract:

The Commerce Department releases a study that indicates that the US is no longer competitive in markets for consumer products such as telephones and facsimile machines, and the nation is losing ground in markets for business and telephone company equipment. Congress ordered this study consequent to passage of the Omnibus Trade and Competitiveness Act of 1988. James W. McConnaughey, an economist with the National Telecommunications and Information Administration, managed the project. The study reveals that the US has run an annual trade deficit in telecommunications equipment of about $2 billion. At blame are an inadequate American educational system, a failure of American companies to incorporate technical breakthroughs into products, and the relatively high cost of money here.

Communications Equipment, Reports, Telecommunications equipment industry, United States economic conditions, United States. Department of Commerce, Industry Analysis, Outlook, Market Analysis, Foreign Competition, United States. National Telecommunications and Information Administration

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MCI plans digital shift next year; company might take charge of $500 million to retire equipment

Article Abstract:

MCI Communications Corp announces it will convert its entire long-distance telephone network to all-digital equipment by the end of 1991. MCI currently uses digital transmission on 70 percent of its calls, and the upgrade plan will make every call digital. MCI says it will take a charge against this quarter's earnings of between $500 million and $550 million to pay for the cost of retiring older analog transmission equipment. MCI's stock falls $1.125 to close at $33.625 on the Aug 21, 1990, announcement. MCI joins AT and T and US Sprint in offering all digital long-distance transmission.

Telephone communications, exc. radio, Services, Telecommunications services industry, Equipment and supplies, Telephone companies, Long distance telephone services, Digital communications, Long-distance telephone service, MCI Communications Corp., MCIC, Financial Analysis Software, Telephone Company, Digital Communication, Upgrading

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