U.S. awards phone pact to MCI

Article Abstract:

The US Department of Defense Office of Commercial Communications awards MCI Communications Corp with a contract to provide long-distance telephone service to federal agencies, giving the government the option of buying services from MCI without seeking competitive bids. The five-year contract should generate between $50 million and $75 million in annual sales for MCI. International long distance service is used predominantly by the military, the State Department, the Energy Department and intelligence agencies, which currently receive most of their long-distance services from AT&T. The FTS 2000 government contract, which requires most agencies to purchase domestic telephone equipment from AT&T or US Sprint but has been riddled with contract disagreements, may be in jeopardy due to the MCI contract. MCI claims it could save the government $100 million a year if it were in the FTS 2000 arena. Government domestic telephone expenses have been estimated at $148 million more than if services had been purchased on the open market, though these figures will likely improve due to 30 percent price cuts given to the federal government by US Sprint.

National security, Contracts, Long-distance telephone service, United States. Department of Defense, MCI Communications Corp., MCIC, International communication, Government communication systems, Government communications systems, Cost of Communications, Government Contracts, International Communications, Telecommunications Services Industry

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U.S. warns of phone industry lag

Article Abstract:

A report by the US Commerce Dept's National Telecommunications and Information Administration indicates that US telephone companies are lagging behind other leading industrial countries in telecommunications investment. While lauding the overall success of competition and deregulation in the US, an NTIA representative noted a serious lag in the installation of new network technologies in the US. In addition, overall spending on a per line basis was only $88, compared with Germany's current spending pattern of $238 per line. The US placed last among seven leading industrial countries in investment between 1980 and 1989, showing a decline of 8.1 percent. By 1994, the study predicts, the US will fall behind other nations in the use of integrated voice and data communications services. Only 57 percent of Americans are expected to use the Signaling System 7 advanced services, comparing unfavorably with France, Britain and Canada.

Planning, Laws, regulations and rules, Reports, Computer telephony, Telephone companies, Investments, Regional Bell Operating Companies, Integrated Voice/Data, Outlook, Telephone Company, Government Regulation, Bell Regional Holding Companies, United States. National Telecommunications and Information Administration, Signalling System 7 (Telecommunications service)

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