Defying merger trend, AT&T plans to split into three companies; long distance, freed of NCR and equipment business, will take on the Bells; capital subsidiary is for sale

Article Abstract:

AT and T Chmn Robert E. Allen has announced that the huge telecommunications conglomerate will be broken up into three independent, publicly-traded companies, a move that Allen contends will give the telephone service unit more flexibility to face new competitors. Under the restructuring plan, AT and T will retain the telecommunications services unit, which currently accounts for 60% of the company's sales, 80% of its profits and $50 billion in annual revenue. The second unit will consist of the telecommunications equipment manufacturing units and Bell laboratories. It will have about $20 billion in annual revenue. The third unit will include the deeply troubled computer manufacturing unit, formerly known as NCR. It will have about $8 billion in revenue. The computer unit lost about $500 million so far in 1995. Allen contends that the break-up will allow the three units to operate more efficiently in their various markets.

Wired Telecommunications Carriers, Telephone Communication, Communications Equipment, Telecommunications Equipment, Communications Equipment Manufacturing, Telephone Communications, Management, Telecommunications services industry, Telecommunications industry, AT&T Corp., Telecommunications systems, Telephone services, Reorganization and restructuring, Company Business Management, Company Operations, Company Restructuring/Company Reorganization

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AT&T receives $600 million job from GTE

Article Abstract:

GTE Corp picks AT and T over Motorola Inc for a $600 million contract to make cellular telephone equipment. The contract is a blow to Motorola, but the company indicates that it has a competitive base with its wireless technology. The contract with GTE calls for AT and T to install its Autoplex System 1000, which includes software, switches and digital radio equipment, in over 36 cities; the first equipment is scheduled to be installed in Jun 1991 in Tampa. FL. GTE indicates that it chose AT and T over Motorola because AT and T's equipment allows GTE to upgrade the network to digital more quickly. Motorola became a leader in the cellular telephone equipment industry when it overtook AT and T in 1988, but now AT and T is making a comeback.

Telephone and telegraph apparatus, Contracts, GTE Corp., GTE, Cellular telephone equipment industry, Business planning, American Telephone and Telegraph Co., Competition

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