Cellular stocks lose attraction

Article Abstract:

Cellular telephone company stocks have lost half their value since the middle of 1989. Shares in McCaw Cellular Communications Inc, which is the nation's largest cellular company, fell 73 percent, from $47.25 in Jun 1989, to close at $12.75 on Oct 26, 1990. Bell company stocks have dropped several dollars, reflecting a decrease of interest in their cellular holdings. Stock prices of cellular companies did well in the late 1980's. In some deals, buyers paid as much as $30,000 per subscriber in an industry where an average subscriber only produces $1,100 a year in revenues. But now, many franchises are for sale, and small companies are struggling for financing. And demand for franchises has faded. These problems tend to obscure the fact that cellular telephones are being accepted as a part of upper-middle-class and small-business life, and some observers foresee a bright future.

Securities, Regional Bell Operating Companies, AT&T Wireless Services Inc., Stock markets, column, Stock Market, Stock, Market Value, Bell Regional Holding Companies, MCWA

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Contel agrees to takeover offer by GTE

Article Abstract:

GTE Corp and Contel Corp plan a securities transfer to accomplish one of the largest mergers in the communications industry. The acquisition of Contel by GTE is expected to cost about $6 billion when completed. When the deal is complete, GTE should be the fifth largest telephone company and second largest cellular phone service provider in the US. Some of the executives of Contel plan to join the board of directors and management of GTE as part of the takeover agreement. Industry analysts see the two firms as very compatible, in the staple areas of telephone and cellular service and in the expanding areas of satellite communications and cable television.

Telephone communications, exc. radio, Planning, Management, Stock transfer, Telecommunications Industry, Securities Transfer, Contel Corp., CTC

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GTE to buy 14 cellular phone units

Article Abstract:

GTE Corp will pay $710 million to Providence Journal Co for cellular telephone systems in 14 cities in the Southeast. This is the first such deal in nearly three years by one of the eight largest providers of local phone services. The seven regional Bell companies and GTE have been developing cellular systems rather than buying them. A GTE spokesman says the company has been looking for cellular acquisitions and will continue to do so. A recent FCC distribution, by lottery, of rights to build cellular systems in 428 rural areas has increased the supply of properties on the market.

Telephone systems, Telephone System, Telecommunications Services Industry, Providence Journal Co.

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