The 'new' AT&T faces daunting challenges

Article Abstract:

AT&T is nearing the completion of its breakup, but now faces an uncertain future. The spin off of its Lucent Technologies Corp telecommunications equipment division will be completed on Sep 30, 1996. The separation of the NCR Corp computer division will be finalized before the end of 1996. AT&T experienced an unprecedented decline in its calling-volume growth between its first and second quarters, and the rate at which customers sign up for AT&T services and then drop them doubled in the 2nd qtr. The price of the company's stock has dropped 16% since January, 1996. AT&T will face increased competition when the regional Bell operating companies (RBOC) enter the long-distance market in 1997. AT&T plans to compete by offering local, long-distance and in-state toll call services for a flat rate, probably around 15 cents per minute. The rate may eventually be extended to cellular calls.

Wired Telecommunications Carriers, Long Distance Telephone Svc, Telephone communications, exc. radio, Local Telephone Service, Prices and rates, AT&T Corp., T, Long distance telephone services, Company restructuring/company reorganization, Reorganization and restructuring, Local telephone services, Long-distance telephone service, Company pricing policy

---

GTE is negotiating ventures in China and Spain to double foreign business

Article Abstract:

GTE Corp has been pursuing joint ventures with China United Telecommunications Corp and Spain's Telefonica SA in an effort to double the company's international business. GTE is expected to announce a 50-50 joint venture agreement with China United Telecommunications, one of the developers of China's Unicom network. Unicom connects extensive systems run by China's railway, electronics and power industries. GTE has also been negotiating with Telefonica to expand the company's operations in Latin America, but no agreement has been reached yet. A recent devaluation of the Mexican peso has made GTE reluctant to enter into any financial agreements with Telefonica. The international market offers GTE and other telecommunications giants a promising frontier of underdeveloped, communications-hungry clients.

Telecommunications, Telephone Communication, China, Joint ventures, Telecommunications systems, GTE Corp., GTE, Telefonica S.A., Spain, China United Telecommunications Corp., Company joint venture, Company business planning, Cooperative Agreements

---

Similar abstracts:

• Abstracts: Intel stock falls 7% on worries over chip sales. FTC investigation of Intel appears to be near end
• Abstracts: IBM shuffles Europe operation's top management. ICL unveils a massive reorganization to combat trouble in the PC business
• Abstracts: Complaint line: some AT&T clients gripe that cost cuts are hurting service; employees, too, complain - about job security and multiple transfers; the downside of downsizing
• Abstracts: Dell to offer shares despite trading fracas. Merrill Lynch's ads try a little dignity
• Abstracts: International diversification: effects on innovation and firm performance in product-diversified firms. Effects of acquisitions on R&D inputs and outputs

This website is not affiliated with document authors or copyright owners. This page is provided for informational purposes only. Unintentional errors are possible.