Pay-phone operators ring in deregulated era today: with local-call tariffs unfettered, service providers may see windfalls

Article Abstract:

Deregulation of local-call charges may produce mixed results for the pay-phone industry. Operators that raise local rates from the average 25 cents to 35 cents would increase their revenue by 40%. The FCC, which 'deregulates and detariffs' the industry beginning today, also will determine reimbursement of phone use for long-distance access or 800 calls. Potential drawbacks include insufficient revenue for struggling small companies and a customer backlash against higher rates. Regional Bell companies, four publicly traded companies and thousands of private providers comprise most pay phone operators. Publicly traded pay-phone companies accounted for nearly $320 in 1996 combined revenue, and operate only 130,000, or 6% of the two million domestic pay phones. Davel Communications is the lone company that provides a consistent profit. The other three public pay-phone companies consist of Peoples Telephone, Communications Central and PhoneTel Technologies.

Wired Telecommunications Carriers, Misc Telephone Svcs, Prices and rates, Telecommunications industry, Forecasts and trends, Industry trend, Telephone company, Telephone services, Pay telephones, Local telephone services, Pay telephone, Local telephone service

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BCE, Nynex join in bid for Mexico's phone company

Article Abstract:

BCE Inc and Nynex Corp will join with Casa de Bolsa Inverlat Associates, a Mexican financial company, to bid for control of Telefonos de Mexico. The group will make an offer for a 20.4 percent equity stake that is held by the Mexican government. The 20.4 percent block represents somewhat more than half of TelMex's full-voting shares. At current stock prices, TelMex is estimated to be worth $7 billion, so that the 20.4 percent stake is worth about $1.4 billion. The Mexican government holds about 56 percent of TelMex and the rest is publicly held. BCE and Nynex each will hold about 25 percent of the planned venture, and Casa de Bolsa Inverlat Associates will hold at least 50.1 percent. Under rules established by the Mexican government, groups that make bids must be at least 50.1 percent owned by Mexican investors.

Mergers, acquisitions and divestments, Mexico, BCE Inc., Telefonos de Mexico S.A. de C.V., Acquisition, NYNEX Corp., NYN, Casa de Bolsa Inverlat Associates S.A. de C.V.

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Australia calls for competitors in phone service

Article Abstract:

The Australian government has approved a plan that will open the nation's telecommunications industry to competitors. The government has asked outsiders to submit proposals for the creation of a new telecommunications company that will compete with the government-owned Australian Telecommunications Corp (Telecom). Telecom has a monopoly on the Australian market and competitors will be granted the necessary licenses to operate and gain access to the nation's existing telephone network in order to compete. The move by the Australian government represents the nation's effort to privatize certain industries in an effort to repay debt and make industries more efficient.

Management, Australia, Science and technology policy, Privatization, Privatization (Business), Competition, Telecom Australia

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