Fraud against corporate phone systems creates dispute over who should pay

Article Abstract:

Telephone fraud involving PBX systems is an issue between telephone companies and their business customers. Many business companies, faced with millions of dollars of fraudulent long distance charges because of computer hackers trying to break security codes, want telephone companies to absorb the costs. But the communication service suppliers say that their tariffs are explicit; they are not responsible. In Jun 1991, Mitsubishi International Corp sued AT&T, claiming that AT&T failed to reveal weaknesses in switching equipment leased by the Japanese and when trouble started, AT&T did not move quickly to help. AT&T refuses to comment on the law suit but maintains that customers are responsible for calls. Pacific Mutual Life Insurance Co is appealing to the US Federal Communications Commission (FCC), asking that telephone companies be required to pay part of the cost of unauthorized calls. The FCC has not yet decided the matter.

ELECTRONIC & OTHER ELECTRIC EQUIPMENT, Life insurance, Regulation, admin. of utilities, Economic aspects, Cases, Telecommunications industry, United States. Federal Communications Commission, T, Crimes against, Long distance telephone services, Design and construction, Fraud, Crime, Private branch exchanges, Computer hackers, Long-distance telephone service, American Telephone and Telegraph Co., Telephone systems, Hacker, Telecommunications, Telephone System, PBX, Communications Fraud Control Association, Mitsubishi International Corp., Pacific Life Insurance Co., MITSU

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NYNEX's unit in New York gets new chief; Richard A. Jalkut is given post at phone concern: Salerno moves to parent

Article Abstract:

NYNEX Corp announces the appointment of Richard A Jalkut to the position of president and chief executive officer of New York Telephone Co. Jalkut replaces Frederic V Salerno, who is moving to become vice chairman and a director at NYNEX. The appointments are part of a series of management changes at New York Telephone resulting from friction with state regulators. Regulators charge New York Telephone with procurement abuses and are trying to restructure the telephone company's relationship with NYNEX affiliates. Jalkut has operational experience, having been employed by New England Telephone and Telegraph Co and New York Telephone, but his appointment is not expected by some analysts to effect the necessary changes. Other new directors include New York University Pres John Brademas and Ivan G. Seidenberg.

Management, Officials and employees, Appointments, resignations and dismissals, Employee promotions, Salerno, Frederic V., Promotion of Employee, NYNEX Corp., NYN, New York Telephone Co., Jalkut, Richard A.

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Argentina cancels sale of phone unit to U.S.-led group

Article Abstract:

A consortium led by Manufacturers Hanover Corp loses the Argentine government's award of part of Argentina's telephone network. The consortium failed to come up with a $100 million cash payment and $2.2 billion in equity-debt paper. The deal involved Argentina's Empresa Nacional de Telecommunicaciones network, or Entel, which the government wants to privatize. Bell Atlantic Corp, which would have managed and operated the new phone company, says that world financial markets have changed substantially with the Kuwait situation. One result was that refinancing the Argentine debt became more difficult than the consortium had anticipated.

Mergers, acquisitions and divestments, Finance, Telephone companies, Investments, Argentina, Bell Atlantic Corp., BEL, Privatization (Business), Consortia, Telephone Company, Manufacturers Hanover Corp., MHC, Empresa Nacional de Telecomunicaciones (Argentina), Consortium, Privatization

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