Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: FRIDAY, July 1, 1994 TAG: 9407010072
SECTION: BUSINESS PAGE: A13 EDITION: METRO
SOURCE: Associated Press
DATELINE: WASHINGTON LENGTH: Medium
They did not disclose terms.
The combination allows the two regional Bell operating companies to take on deep-pocketed players in the cellular business, such as already-allied MCI Communications Corp. and Nextel Communications Inc., and AT&T Corp. and McCaw Cellular Communications Inc., which plan to merge later this year.
``This new company will focus on the development and deployment of `anytime-anywhere' capabilities across a broad market area, with great R&D expertise and superior customer and network support systems,'' Bell Atlantic chairman Raymond Smith said in a statement.
In the same statement, Nynex chairman William Ferguson said: ``Our two companies share a common vision of wireless services.''
The combined company will have annual revenues of $1.2 billion, 1.8 million customers and 4,250 employees. Its service area will cover 55 million people and will include seven of the nation's top 20 markets.
Bell Atlantic would own 62.35 percent of the new company and Nynex would get the rest, a division that reflects the relative sizes of their cellular operations.
However, the venture would be controlled equally by the two companies. The deal is expected to take a year to close, they said.
Bell Atlantic and Nynex have been jointly operating a cellular system in the New York City area for 10 years. That system has the potential to reach 15 million customers.
``To a great degree, this joint venture is an extension of our existing New York-northern New Jersey cellular partnership, and we know from experience that we work well together,'' Ferguson said.
The deal comes as AT&T awaits regulatory approval to buy McCaw Cellular.
At issue is the ultimate ownership of some cellular operations that McCaw - the country's biggest cellular telephone company - co-owns with regional Bells.
Under a 1982 consent decree that broke up the Bell System, AT&T is barred from acquiring assets owned by Bell companies. By purchasing McCaw, AT&T would acquire cellular operations co-owned with other Bells.
by CNB