Nynex local-phone pact aids tiny rival; accord with MFS breaks ground for Bells, cuts network-use charges

Article Abstract:

Nynex Corp, yielding to regulatory pressure, opens up competition in the New York market by reducing the fees it charges MFS Communications Corp for using Nynex' network. State regulatory approval is expected shortly. The contract may be duplicated in other states and in New York itself, where Nynex is negotiating with at least five rivals. MFS sells fiber-optic phone service to business users in 21 US cities. Nynex agrees to charge MFS customers who want to keep their original phone number only $8 per month per line, down from $150. Nynex also agrees to an equitable fee arrangement with MFS. Before, Nynex would charge MFS whenever one of its customers called a Nynex customer, but would not pay MFS when a Nynex customer called a MFS customer. By opening up the local phone-service market, Nynex may help itself win federal regulatory approval to enter the cable-TV and long-distance markets.

Wired Telecommunications Carriers, Telephone communications, exc. radio, Local Telephone Service, Local telephone services, Competition, Market Entry, NYNEX Corp., NYN, MFS Communications Company Inc.

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Citicorp plans new network to pare costs

Article Abstract:

Citicorp, one of the largest users of voice and data services, plans a consolidation of its networks. The banking company hopes to save as much as $100 million a year. This project is part of an overall effort to cut costs. Citicorp hopes to cut $1.5 billion a year by 1993. Citicorp has asked that telecommunications service companies submit plans for the project, which will involve more than 100 networks in 92 countries. Many companies that do business internationally, including Visa International, BankAmerica Corp and the Ford Motor Co, are moving to streamline and unify their telecommunications arrangements.

Commercial Banks, COMMUNICATION, Banking industry, Telecommunications systems, Citicorp, CCI, Cost control, Telecommunications, Cost Reduction, Organization Structure, Banking

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