AT&T phone-link plan to come at a high cost

Article Abstract:

AT&T's planned wireless communications network could give it a huge headstart in its bid to become a major force in the local telephone market, but the system is also tremendously expensive. AT&T has thus far spent $20 billion on the new technology, which begins testing soon. Local telephone companies have a tremendous installed base of copper wire that is completely paid for, and these companies could introduce rate cuts with minimal affect on their profitability. AT&T will have to rigorously cut costs to make any kind of return on its investment. With local service providers entering the long-distance market, AT&T needs a share of the $100 billion local service market. The company's new technology is based on a box that is wired to local copper lines and is able to transmit to a base station in the AT&T wireless network. Less expensive systems have been deployed in less-developed areas to deliver phone services.

Radiotelephone communications, Cellular and Other Wireless Telecommunications, Mobile Radio Services, Local Telephone Service, Usage, Wireless communications, Wireless network, Wireless LANs, Wireless communications services, Wireless communication systems, Company technology development

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AT&T targets home markets of baby bells; division with five regions will coordinate assault in local phone services

Article Abstract:

An internal AT and T memo details plans for the establishment of a Local Services Division that will aggressively target the local telephone markets now dominated by the seven local bell companies. A telecommunications deregulations bill currently in conference in the Congress will allow long-distance telephone providers, including AT and T, to compete directly with local Baby Bell companies. AT and T's establishment of the local telephone services division marks its strong commitment to expanding its business. The division will be divided into five regions that will have broad flexibility to set rates and offer services to consumers and businesses. AT and T hopes to be able to offer telephone services packages that include local, long-distance and wireless features for a flat rate.

Domestic Voice Telephone Service, Services, Domestic telephone services, Company services, Company business planning

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Northern Telecom is looking for ways to grow beyond its phone switches

Article Abstract:

According to chief executive Paul Stern, Northern Telecom must look to areas other than its popular telephone switch market if it is to meet its goal of $30 billion in revenue by the turn of the century. The firm has done extremely well with its switches, but analysts say that market is maturing, and growth opportunities are rare. Instead, Northern Telecom will try to improve its showing in the international market and attempt to capture some of the $300 billion market for switching and transmission systems. Northern must also concentrate on marketing its fiber-optic transmission equipment, and on the booming mobile services market.

Telecommunications equipment, Business planning, Communications Equipment, Marketing Strategy, Expansion, Northern Telecom Inc.

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