IBM is close to deal on phone service over the Internet
Article Abstract:
IBM will market IDT's Net2Phone Internet phone service on the IBM Internet access network, according to executive insiders. Both companies will announce the deal this week, the first of its kind between an Internet access provider and a major international service provider. The arrangement also would strengthen the Internet as a less expensive long-distance alternative to traditional telecommunications networks. Terms call for IBM to package the Net2Phone software with its standard Internet access kit that reaches around 750,000 customers, as well as place a button on its Web site for downloading IDT software. Financial terms call for the companies to share revenue once IBM customers begin to use Net2Phone, rather than paying an upfront sum, according to the executives. Hackensack, NJ-based IDT currently serves 80,000 subscribers.
Publication Name: The New York Times
Subject: Business, general
ISSN: 0362-4331
Year: 1998
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With cable deal, AT&T makes move to regain empire; $31 billion TCI purchase; product of 1996 deregulation may increase competition for local phone service
Article Abstract:
AT&T has announced it will acquire Tele-Communications Inc in a $31.8 billion stock transition, drawing favorable responses from industry regulators. Wall Street reacted to the news with ambivalence, as investors feared AT&T may be acting rashly; consequently AT&T's stock fell $5.375, down to $60 a share. AT&T will acquiring TCI's debt of approximately $11 billion as part of the deal. The acquisition is said to be the most ambitious result yet of the the 1996 Telecommunications Act. AT&T and TCI expressed a desire to begin offering digital phone and data service on cable wires sometime during 1999, but would not commit to a firm date. AT&T will use the end-to-end network it acquires from TCI to avoid paying fees to local phones companies for starting and ending long distance phone calls.
Publication Name: The New York Times
Subject: Business, general
ISSN: 0362-4331
Year: 1998
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American Online posts surprising earnings; marketing deal with Tel-Save holdings aided 3d-quarter profit
Article Abstract:
America Online (AOL) surprised Wall Street by announcing a profitable 3rd qtr ended Mar 31, 1997. The good news follows six months of heavy losses by the country's largest Internet service provider. A profit of $2.6 million was posted for the quarter, on revenue of $456.2 million. This increase is slim compared to the $15.1 million the company earned in the 3rd qtr of 1996, but an impressive improvement over its recent losses of $508.5 million in the past two quaters. The company accomplished this turn about by repositioning itself as a media company, such as a newspaper of magazine, receiving its profits from advertising. AOL's largest largest marketing client is Tel-Save Holdings, which it signed up in Feb 1997 with an advanced payment of $100 million.
Publication Name: The New York Times
Subject: Business, general
ISSN: 0362-4331
Year: 1997
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