Wireless TV finally gets validation; Sprint and MCI acquire many small carriers
Article Abstract:
Just recently, some long-distance phone companies have begun to acquire a number of wireless cable television carriers. These wireless companies were formed during the 1960's and 1970's when the Federal Communications Commission began allocating blocks of radio frequencies to schools, universities and other nonprofit organizations to use for televised 'distance learning.' As it became apparent during the 1980's that these groups did not have the resources to deploy these networks, the F.C.C. altered its rules to allow private companies to acquire these licenses. These wireless cable operators offered subscribers 33 channels of analog television, enough to compete with traditional cable operators. A number of Baby Bell phone companies explored getting into this business and acquiring some of these firms. This was largely in response to cable television companies talk of starting to provide local phone services. The cable operators' plans were a major element of the Telecommunications Act of 1996. However, soon after the act was passed, the cable industry shifted focus towards providing more channels in response to the imminent threat posed by direct-broadcast satellite operators. And while some of the phone companies, such as Bell Atlantic and SBC Communications, have revived their plans to move into television, they have done it through partnerships rather than through acquisitions. Now, MCI Worldcom Inc. and Sprint Corp. have begun acquiring almost all of the wireless carriers, largely in response to the push by the local phone companies to move into their core long-distance markets.
Publication Name: The New York Times
Subject: Business, general
ISSN: 0362-4331
Year: 1999
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Qwest set to acquire LCI for $4.4 billion in stock: deal to create a top long-distance carrier
Article Abstract:
Qwest Communications said it acquired LCI International for $4.4 billion in stock. The move would place Qwest fourth among US long-distance carriers with up to $3 billion in 1997 revenues. Qwest, which has a strong Wall Street following, is developing a national fiber optic communications network based on Internet technology. LCI has emerged as a medium-sized long-distance company with a customer base of more than two million people. Financial terms call for Qwest to pay $42 of its stock for each LCI share, as well as assuming LCI's debt of $525 million. Qwest Chmn Philip F. Anschutz, who controls about 85% of the company, would own about 55% of the company after the merger. LCI Chmn H. Brian Thompson, who has instilled a sense of salesmanship, will become vice chmn of Qwest.
Publication Name: The New York Times
Subject: Business, general
ISSN: 0362-4331
Year: 1998
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