Contact: NYNEX
800-871-2424
Bell Atlantic
703-974-1720
Media Conference Call Number, 10:00 A.M. EST
1-800-633-8413
For Release: Thursday, June 30, 1994
BELL ATLANTIC AND NYNEX TO COMBINE CELLULAR PROPERTIES
ALLIANCE WILL SPEED "ANYTIME/ANYWHERE" SERVICE TO CONSUMERS;
POSITIONS PARTNERS TO COMPETE IN NATIONAL WIRELESS MARKET
New York, NY -- Bell Atlantic Corporation (NYSE:BEL) and NYNEX
Corporation (NYSE: NYN) today announced they will combine their
cellular services properties to create a leading company to
compete in one of the great national growth markets of the next 10
to 20 years -- wireless communications.
"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 and CEO Raymond W. Smith said.
"Our extensive financial, marketing and technological resources
make the new venture a capable competitor in the rapidly
developing wireless marketplace against the likes of AT&T-McCaw
and MCI-British Telecom-Nextel. In addition, we expect to add new
partners to our national PCS [personal communications services]
alliance."
NYNEX Chairman and CEO William C. Ferguson said, "Together, we are
well positioned to deliver the benefits of wireless technology to
customers. Our two companies share a common vision of wireless
services. By combining our efforts, our new venture will secure a
position of leadership in the wireless communications industry by
assuring that new applications are brought to customers in a
timely, cost-effective way.
"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 to provide value
for our customers and our respective shareowners."
For 10 years, NYNEX and Bell Atlantic together have operated a
cellular system in the New York metropolitan area which, with a
population of some 15 million people -- or POPs in industry
parlance -- is the largest cellular market in the nation.
NYNEX and Bell Atlantic together serve seven of the top 20
cellular markets in the U.S. Their combined markets cover a
population of some 55 million POPs.
Initially, Bell Atlantic will own 62.35% of the company, and NYNEX
will own 37.65%.
"By extending the Bell Atlantic-NYNEX reach from Maine to South
Carolina -- including the densely populated, communications-
intensive Northeast corridor running from Boston to Washington,
D.C. -- our joint venture will be positioned to create a premier
national wireless service provider that will offer a new range of
choice to consumers," said Lawrence T. Babbio, Jr., Bell Atlantic
executive vice president and chief operating officer, and chairman
of the joint venture's management operations committee.
The new joint venture also includes Bell Atlantic's properties in
the Southwest.
"We have the foundation for building a national wireless presence
by obtaining PCS licenses and by bringing like-minded PCS
providers into our new alliance," he said.
Babbio also committed the new company to employing the best
business practices culled from the operations of Bell Atlantic's
and NYNEX's existing mobile subsidiaries. "We intend to provide
our customers with the best wireless service available anywhere,"
he said.
The new venture will develop an aggressive strategy for acquiring
and operating PCS licenses that are expected to be auctioned by
the Federal Communications Commission later this year. The
company will coordinate existing cellular operations with newly
acquired PCS licenses to quicken the introduction of coast-to-
coast personal communications services.
The parent companies have established a management operations
committee to determine how to best integrate their wireless
operations while maintaining excellent customer service and
effective marketing efforts. In addition to Babbio, the members
of this top-level group will be Frederic V. Salerno, NYNEX vice
chairman-finance and business development; James G. Cullen, Bell
Atlantic president; Ivan G. Seidenberg, NYNEX vice chairman,
president and chief operating officer; and William O. Albertini,
Bell Atlantic vice president and chief financial officer.
The companies expect to close the transaction in the second
quarter of 1995. The joint venture will be controlled equally by
both companies.
NYNEX is a leader in helping people communicate by providing
telecommunications, directory publishing and information network
and delivery services to 12 million customers in the northeastern
United States and selected markets around the world.
Bell Atlantic Corporation, based in Philadelphia, is the parent of
companies which provide a full array of local exchange
telecommunications services in New Jersey, Pennsylvania, Delaware,
Maryland, Virginia, West Virginia and Washington, D.C. The
corporation is at the forefront of developing a variety of new
products, including video, entertainment and information services.
In addition to being the corporate parent of one of the nation's
largest cellular carriers, Bell Atlantic has an ownership position
in cellular properties internationally. In addition, Bell
Atlantic owns an interest in Telecom Corporation of New Zealand
and is the parent of companies that provide business systems
services for customer-based information technology throughout the
U.S. and internationally.
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Notes: The press conference will be recorded and replayed from 2
p.m. to 4 p.m. on June 30, 1994, on 800-633-8284, reservation
number 786691#.
* * *
A video news release will be available via Medialink between 1-
1:30 p.m. EDT and 2-2:30 EDT on Telstar 401, Transponder 17;
audio: 6.2 and 6.8 megahertz; downlink frequency 4040, channel 17.
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