Scandal spurs Bell Atlantic shift in Mexico; company takes over venture from founder
Article Abstract:
Bell Atlantic has assumed management control of Grupo Iusacell SA de CV, a Mexican cellular telephone company, and has relieved Carlos Peralta Quintero of his responsibilities for daily operations. Bell Atlantic acted under pressure from the Mexican government, which is investigating Peralta for his $50 million contribution to Raul Salinas de Gortari. Salinas, brother of Mexico's former president, is facing corruption charges. Bell Atlantic has invested $1 billion in Iusacell. Iusacell's petition to the Mexican government to initiate a nationwide local phone service has been stymied by the government's concerns about Peralta. Bell Atlantic will acquire the majority of Iusacell's voting shares and will have a majority of board seats. The Peralta family will continue to hold 48% of the company ownership, while Bell Atlantic holds 42%. Following the announcement, Iusacell's American depository receipts on the New York Stock Exchange rose $1.875, almost 27% on Nov 27, 1996.
Publication Name: The New York Times
Subject: Business, general
ISSN: 0362-4331
Year: 1996
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Cutting the cord: with new rates, some callers make cellular phones their only phones
Article Abstract:
An increasing number of customers are replacing their stationary wireless phones with cellular phones. Increased competition, lower rates, improved coverage areas and additional features are contributing to the growing trend. Monthly cellular phone service is growing by one million customers, which includes businesses as well as individuals. The number of US cellular phones will leap from 53.3 million to 113.7 million by 2003, according to industry forecasters. Some customers are discovering that cellular telephones can charge significantly less than land-line competitors for services such as caller ID, voice mail and speed dialing. Cellular phone customers also can take advantage of lower weekend calling rates. Among the drawbacks are misplacing the phones, constant access for business users and equipment problems.
Publication Name: The New York Times
Subject: Business, general
ISSN: 0362-4331
Year: 1998
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Sprint decides wireless wins over cellular
Article Abstract:
Sprint is planning to spin off its cellular communications business into a separate company after being pressured by the government to choose between providing wireless or cellular communications. The parent company will then be able to develop a new wireless service called personal communications service, or PCS, that the company is developing with Comcast, Cox Communications and TeleCommunications Inc. Sprint purchased the right to develop wireless services in early 1995 when it successfully bid for wireless licenses in a federal auction. The joint venture of the three companies bid for licenses in 29 markets and paid $2.1 billion. Analysts say that the companies will need about $5.4 billion in order to develop the PCS networks.
Publication Name: The New York Times
Subject: Business, general
ISSN: 0362-4331
Year: 1995
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