Bell Atlantic, Nynex, PacTel to close Tele-TV

Article Abstract:

Bell Atlantic Corp, Nynex Corp, and Pacific Telesis Group are abandoning their joint venture, Tele-TV. Technical difficulties, rising costs, and vast changes in the market have prompted the three Bells to give up their plansto pioneer future interactive television. The three companies are reputed to have invested $500 million since the inception of the venture in 1994. The three Bells claim to have started Tele-TV to counter pending threats from cable companies by offering more sophisticated interactive features for viewers. The three companies, however, are giving up their original goals since finding the provision of telephone services over cable lines to be more costly and technically difficult than orignially expected. The Bells are also responding to the telecommunications legislation recently passed by Congress allowing them to compete in the $70 billion long-distance market. This familiar market provides the three Bells with a more cost-effective investment than interactive television.

Management, Digital television, NYNEX Corp., Pacific Telesis Group, PAC, NYN, Tele-TV

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European phone giants challenge Italy; French, German alliance with Sprint takes in Olivetti, Bell Atlantic

Article Abstract:

Partners France Telecom, Deutsche Telekom AG and Sprint Corp will team up with partners Ing. C. Olivetti and Co and Bell Atlantic Corp to form a joint venture to provide telephone service in Italy, but it will not begin full operations until after 1998. The member countries of the European Union, which includes Italy, will be forced to open up their telecommunications markets to competition in 1998. Italy is seen as a particularly lucrative potential market because of the strong dislike for the Telecom Italia monopoly. The joint venture will be 51% owned by Bell Atlantic and Olivetti, with France Telecom, Sprint and Deutsche Telekom owning the remaining portion. The partners will initially invest only $125 million by 1997. The partners are not able to build a physical telecommunications infrastructure until 1998.

Italy, Telecommunications systems, Long distance telephone services, Deutsche Telekom AG, France Telecom S.A., Olivetti S.p.A., Long-distance telephone service, Telephone systems, Telephone system

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Sprint relays its concerns over TCI stake in venture

Article Abstract:

Sprint has informed the Justice Department that TCI must divest its approximately $1.3 billion stake in Sprint's key wireless business without weakening the venture before merging with AT&T, according to insiders. The three companies have intensified efforts to avoid a scenario under which AT&T-MCI would hold a significant interest in Sprint's Sprint PCS. Sprint, meanwhile, seeks to strengthen its Sprint PCS position by obtaining a larger controlling interest from TCI and the two other cable partners. Terms of the complicated deal would call for TCI's stake in Sprint PCS to decline from the present 30% to around 23%. The venture restructuring, which Sprint will present to its shareholders for approval on Nov 15, 1998, also would include an initial public offering of as much as $600 million of shares.

Mergers, acquisitions and divestments, AT&T Corp., T, AT&T Broadband and Internet Services Inc., TCOMA

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