Regulatory surprises in Ukraine lead Motorola to pull investment

Article Abstract:

Motorola has decided to pull out of planned $500 million investment in cellular phone networks in the Ukraine, frustrated by shifts in regulatory fees and regulations. Motorola and its local partners as well as a consortium backed by Deutche Telekom were promised frequencies, and promised there would be no charges. Then officials from the Ukraine's Ministry of Communications announced they planned to charge an annual $65 million for frequency usage, far more than the annual revenue of any previous cellular phone service in the country. After intervention by the US Ambassador, officials relented, but then awarded a third frequency to a Ukrainian company, Kievstar, with no evidence of sufficient financing or experience. The Ukrainian officials then reintroduced the fees, and delayed the frequency allocations for five months. Motorola and Deutsche Telekom claim Kievstar is getting special treatment, and other Western investors have expressed similar frustrations with dealing with bureaucrats in the former Soviet republics.

Cellular Mobile Radio Services, Planning, Foreign operations, Wireless network, Wireless LANs, Company investment, Investments, Telecommunications equipment industry, Motorola Inc., MOT, Company business planning

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Works in progress; Wireless devices are getting better, but in terms of consumer acceptance they have a long way to go. A product-by-product guide

Article Abstract:

The wireless communications market is encountering competing standards and an upcoming surge of products. PCS ranks as the most popular wireless technology, with more than 500,000 sold since their fall 1996 introduction. These portable phones outperform analog cellular counterparts in service at a lower monthly cost, although this affects only heavy users in certain locations. Direct-broadcast satellite services has emerged as the top digital wireless product of the 1990s, with seven million sales. The development has prompted 64% of the digital satellite system owners to discontinue cable service. Some customers report poor image quality during fast-action sequences. Pagers remain paramount in obtaining wireless messages, as Dataquest reports domestic sales soaring from 34 million in 1995 to 43 million in 1996. Improvements on blocked signals and price reductions are cementing pagers' position. GPS satellites are becoming a more viable alternative for subscribers that range from farmers to General Motors.

Telecommunications services industry, Telecommunications industry, Forecasts and trends, Marketing, Market Trend/Market Analysis

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AT&T unveils flat rates for cell phones

Article Abstract:

AT&T introduced an aggressive flat-rate monthly pricing plan in May 1998 targeted to high-end cell-phone users. Digital One Rate features no extra charges for roaming or long distance, as well as a Nokia phone that works on analog and digital networks. AT&T, which reaches 97% of the US, is drawing criticism from competitors for its three-tiered monthly airtime rates that range from 11 cents to 15 cents a minute. Digital One Rate will charge $89.99 for 600 minutes, $119.99 for 1,000 minutes or $149.99 for 1,400 minutes. Some analysts said AT&T's unprecedented free-roaming offer raises the bar for developing wireless rivals such as Nextel Communications and Sprint's Sprint PCS. AT&T Chmn C. Michael Armstrong said the new plan, which should benefit heavy users such as traveling executives, would help the company boost revenues.

Prices and rates, Cellular telephone services industry, AT&T Corp., T, Company pricing policy

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