Pacific Telesis plans to split in two

Article Abstract:

Pacific Telesis Group's board votes to split the California-based corporation into a $9 billion telephone company and a $1 billion wireless-phone company. The former will be a traditional, regulated telephone monopoly, and the latter, to be called Pactel Corp, will be a high-growth, competitive, lightly regulated business. The split will position Pactel to exploit opportunities involving wireless telephones and personal communications services (PCS). Industry observers foresee a PCS market worth $30 billion by the late 1990s. When Pactel is spun off, Philip Quigley will replace Sam Ginn as president and CEO at Pacific Telesis. Pactel Corp will be headed by Ginn. Trading in Telesis stock was halted on the New York Stock Exchange on Dec 11, 1992. Before the halt, Telesis' shares gained 50 cents, rising to $44.375.

Holding companies, not elsewhere classified, Personal communications services, Strategic Planning, Organization Structure, Reorganization, Stock, Pacific Telesis Group, PacTel Corp.

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U.S. network is planned for cellular: GTE Group intends to challenge McCaw

Article Abstract:

GTE Corp, Nynex Corp, Ameritech Inc and Bell Atlantic Corp agree to establish a nationwide mobile network for transmitting and receiving cellular phone calls. The move is seen an attempt by GTE and the regional Bell companies to catch up with cellular leader McCaw Cellular Communications Corp, which has already set up a nationwide network called Cellular One. Because new cellular subscriptions are beginning to slow, both groups are trying to build customer loyalty with the new services. Although overall subscriptions grew 35 percent, to 7.3 million, in 1991, many of the new subscribers are infrequent users. Average monthly billing is down, to $80 in 1991, from $130 in 1987. Success in 1992 and beyond will largely depend on how well the competitors manage to retain their respective high-volume users.

Telephone and telegraph apparatus, Prepackaged software, Cellular telephones, Wireless telephones, Bell Atlantic Corp., GTE Corp., BEL, GTE, Customer service, Industry Analysis, Competition, Cellular Radio, Cooperative Agreements, Telecommunications Service, NYNEX Corp., NYN, Ameritech Corp.

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