ROANOKE TIMES
Copyright (c) 1996, Roanoke Times
DATE: Wednesday, April 24, 1996 TAG: 9604240036
SECTION: BUSINESS PAGE: B-6 EDITION: METRO
DATELINE: NEW YORK
SOURCE: Associated Press
Highlighting the furious pace of change in telecommunications, Nynex has unveiled a deal with Sprint Communications that puts it into the long-distance business, just a day after Nynex's merger with Bell Atlantic Corp. was announced.
Nynex announced Tuesday that it has signed a two-year contract to sell long-distance service, delivered over Sprint's network, under the Nynex name. Nynex plans to begin offering long-distance in some states outside its own Northeast territory within three months.
Though other regional phone companies also intend to provide long distance by reselling service provided by others, Nynex's deal is noteworthy given its proposed merger with Bell Atlantic.
``You've got Sprint coming up with what appears to be a very nice deal,'' said Scott Wright, a telecommunications analyst at Argus Research. The creation of a combined Nynex and Bell Atlantic gives Sprint a line into a huge and potentially lucrative phone market.
In fact, Bell Atlantic already has a preliminary agreement of its own with Sprint to offer long-distance calling over Sprint's network, said Bill White, a spokesman for Sprint in Westwood, Kan.
Nynex's deal is slightly different from Bell Atlantic's because it extends beyond reselling service over Sprint's long-distance network. Nynex also plans to offer billing, telemarketing and customer-care services that it will purchase from Sprint.
Financial terms of the agreement were not disclosed.
Sprint still will compete for long-distance business in the areas where Nynex plans to offer it, while collecting fees from Nynex for the use of its facilities. Thus, Sprint will be a competitor to its own customer.
In addition, Nynex plans to offer long-distance service outside the seven states in which it provides local phone service.
``It's another one of these opening shots that the regional Bell companies are definitely competing against one another,'' said Gary Arlen, president of Arlen Communications, a research firm.
Nynex plans first to offer domestic long-distance in six states outside its operating region: Arizona, California, Florida, Georgia, Illinois and Texas. Service should begin in three months, pending regulatory approval, Nynex said.
The company intends to offer international long-distance service to customers outside its seven-state area this summer, adding service in its region following the approval of regulators.
Finally, Nynex plans to offer domestic long-distance service within its operating region. First, however, it must satisfy requirements of the new telecommunications law.
LENGTH: Medium: 56 linesby CNB