U.S. says AirTouch, like Baby Bells, must observe court-imposed restraints

Article Abstract:

The US Justice Dept tells AirTouch Communications that it must follow the same court-mandated restrictions as the Baby Bells. A former unit of Pacific Telesis Group, a Baby Bell, AirTouch had been designing telephone equipment and selling long-distance services. Under terms of the consent decree that broke up the Bell system, the regional Bell companies cannot enter these businesses. AirTouch appeals the ruling to US District Judge Harold Greene, who enforces the consent decree. Justice has agreed not to enforce the ruling until Greene issues a decision. Longtime Greene watchers say that the judge, who tends to make narrow interpretations of the consent decree, may rule against AirTouch. MCI, which stands to lose business to AirTouch, asked Justice to review AirTouch's regulatory status. A negative ruling would not affect AirTouch's proposed merger with U S West Inc.

Regional Bell Operating Companies

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Pacific Telesis Group ignored warning by the Justice Department on spinoff

Article Abstract:

A spinoff company belonging to the Pacific Telesis Group could be in violation of the court decree that controls the Bell regional holding companies. The spinoff, AirTouch Communications, may be forced to reduce its expansion plans if it can not gain approval from a federal judge. The decree prohibits the Bell companies from manufacturing telephone equipment or from offering long-distance telecommunications equipment. In 1993, officials from the Department of Justice warned the company that it would have to abide by the consent decree but the warnings were ignored. AirTouch started offering long-distance service on its cellular system and is planning to offer its own telecommunications equipment. The Justice Department has reminded AirTouch that it must abide by the consent decree but AirTouch claims that the consent decree does not apply to the company.

Telecommunications, Telephone Communication, Smart phone, Smart phones, Spinoff company, Spinoffs (Corporate), Pacific Telesis Group, PAC

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AirTouch net income increases 48%, chairman's stock options are doubled

Article Abstract:

AirTouch Communications posts a net income of $52.2 million for 1st 1996, a 48% increase from the $35.2 million recorded in the same period a year earlier. AirTouch's $448.9 million for the quarter represent a 20% increase from the $372.9 million posted in 1st qtr 1995. A large portion of the earnings are due to the company's increasing presence in international cellular communications markets and represents more than 50% of AirTouch's sales for the first time in company history. AirTouch CEO Sam Ginn, whose salary is based on company performance, received a salary increase of 5%, a bonus increase of 16% and an additional 435,750 stock options on the news of company profits. U S West Communications reports earnings of $328 million for the 1st qtr 1996, a 4.1% increase from the $315 million posted in the same period in 1995.

Finance, Telecommunications services industry, Compensation and benefits, Securities, Company sales/revenue, Company sales and earnings, Company earnings/profit, Company securities, ATI, Ginn, Sam L., U S WEST Communications Inc.

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