$375 million contract given to MCI by U.S

Article Abstract:

MCI Communications Corp won a five-year, $375 million government contract to provide long-distance telephone service for pay telephones at United States Navy, Marine Corps and Coast Guard sites. AT and T, which has three-quarters of the $2 billion long-distance pay telephone market, was unsuccessful in its bid. AT and T will still provide service at Army and Air Force sites. The contract for MCI is desirable since it has had trouble penetrating the pay telephone market, which represents a segment of the $52 billion long-distance telephone market. The contract is also the largest since Federal District Judge Harold H. Greene ordered local telephone companies in 1988 to allow equal access to long-distance companies other than AT and T in the pay telephone market. MCI stock rose 37.5 cents and closed at $35.375 in over-the-counter trading on May 1, 1990.

Telephone companies, T, Long distance telephone services, Long-distance telephone service, United States. Coast Guard, MCI Communications Corp., MCIC, United States. Marine Corps, Telephone Company

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A.T.& T. in a deal in Japan; first sale of gear to Nippon Phone

Article Abstract:

The Nippon Telegraph and Telephone Co (NTT) and AT&T announce that NTT will purchase a dozen of AT&T's most advanced telecommunication switching systems. The deal, which is estimated by analysts at about $40 million, marks the first time NTT is buying equipment from AT&T and is seen as a positive step toward correcting the thorny issue of declining Japanese imports. In 1992, Japan imported $555 million worth of telecommunications equipment from the US, down from $699 million in 1991. NTT has traditionally relied on Japanese equipment suppliers but Japanese government officials are quick to point out that the company has been increasing its foreign purchases continuously. The NTT deal comes at a time when the Clinton Administration is reviewing whether imported minivans and sport-utility vehicles will be classified as trucks instead of cars.

Electronic computers, International trade, Nippon Telephone and Telegraph Corp., Telecommunication switching equipment, Telecommunications switching equipment, Activism, Political protest, Equipment Acquisition, Political Issue

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Government to suspend U S Sprint's Navy contract

Article Abstract:

The US General Services Administration (GSA) suspends a contract between U S Sprint Communications Co and the US Navy. U S Sprint was to provide components of a 10-year, $25 billion high technology telephone system contract. The telephone systems contract began in 1988 and called for AT and T to receive 60 percent revenue from the new telephone system and US Sprint to receive 40 percent of the revenue; AT and T was granted a larger portion of the revenue because it had a lower bid for services. But the actual division of the contract made more use of Sprint's services than had been expected, resulting in higher-than-expected costs. The Navy contract that is the source of the contention is actually a small portion of the overall contract and accounts for only $20 million to $25 million a year in telephone calls.

National security, General government, not elsewhere classified, Cases, Sprint Corp., Telephone systems, United States. General Services Administration, Government Agency, Telephone System, Military

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