AT&T bypasses normal suppliers in local-phone race; Telecom giant turns to Bosch, Radix for assistance in wireless project

Article Abstract:

AT&T is working closely with the German company Robert Bosch and Radix Technologies to develop the wireless telecommunications system that it hopes will make it a major player in the local service market. The innovative system includes a radio-transmission box on the outside of a residence, providing several phone lines and a high speed data access line. A series of base stations and antennas would relay radio waves across the network, thus bypassing conventional phone lines. AT&T paid $2.1 billion for the airwave licences, and has spent millions on development. Bosch's initial work for AT&T met with such great success that the two companies now plan further cooperation. Radix Technologies contributed technology for the smart-antenna system that was originally developed for military purposes. AT&T may also work with more regular suppliers, including Ericsson and Northern Telcom, but it will not seek supplies from Lucent Technologies, its recent spinoff.

Radiotelephone communications, Cellular and Other Wireless Telecommunications, Mobile Radio Services, Product development, Wireless communications, Wireless network, Wireless LANs, AT&T Corp., Wireless communications services, Wireless communication systems, Local telephone services, Company technology development, Cooperative agreement for product development, Alliances and partnerships, Robert Bosch GmbH, Local telephone service, Radix Technologies Inc.

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AT&T reduces long-distance price structure; move follows reductions by rivals, but company sees no war on rates

Article Abstract:

AT&T has lowered long-distance telephone rates in response to earlier price-cutting by its rivals MCI and Sprint. MCI has embarked on a program to drop rates by as much as 50% in its New Friends & Family plan and analysts speculate that AT&T may be ready to seriously undercut MCI prices through deep discounts or possibly even a price war. However, AT&T maintains that the proposed reductions of $650 million for its True Savings plan are minimal when compared to the $42 billion in annual long-distance revenue pulled in by the company. AT&T has filed for the rate cut with the FCC in conjunction with a request to raise domestic and international calling-card and operator assistance charges by $420 million overall. AT&T lost $1.5 billion in share market value on Feb 16, 1995 when news of the pending price cuts reached Wall Street. MCI and Sprint shares also declined in value.

Wired Telecommunications Carriers, Long Distance Telephone Svc, Telephone communications, exc. radio, Prices and rates, Long distance telephone services, Long-distance telephone service, American Telephone and Telegraph Co., Company pricing policy, Price cutting, Competition

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