SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported) February 2, 1998
CINCINNATI BELL INC.
(Exact name of registrant as specified in its charter)
Ohio 1-8519 31-1056105
(State or other jurisdiction (Commission File Number) (I.R.S. Employer
of incorporation) Identification No.)
201 East Fourth Street, Cincinnati, Ohio 45202
(Address of principal executive office) (Zip Code)
Registrant's telephone number, including area code (513) 397-9900
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(Former name, former address and former fiscal year, if changed since last
report)
FORM 8-K CINCINNATI BELL INC.
ITEM 5. OTHER EVENTS.
On February 2, 1998 Cincinnati Bell Inc. (the "Company") announced an
agreement on a multi-year renewal of agreements between Cincinnati Bell
Telephone Company and AT&T Corp. under which the companies provide service to
each other. The companies had earlier agreed to continue operating under
prior agreements during negotiations. The Company believes that revenues from
the new agreements will continue to represent less than 5% of the total
annual revenues of the Communications Services segment of the Company.
On February 3, 1998 the Company announced that it and AT&T had agreed to
form a joint venture to provide personal communications services ("PCS") in
the Cincinnati and Dayton, Ohio markets. The agreement provides that
Cincinnati Bell Wireless, a subsidiary of the Company, will acquire an 80%
interest in the new regional communications network from AT&T Wireless
Services for more than $100 million. The venture will provide PCS under the
Cincinnati Bell Wireless brand name, with a tagline reference to AT&T
Wireless Services, the nation's largest provider of wireless communications
services.
Cincinnati Bell Wireless expects to begin offering PCS in the second
quarter of 1998 in Cincinnati and in the third quarter in Dayton under an
interim agreement until the transaction closes later this year. The
Cincinnati/Dayton region has a population of approximately 3 million. The
network will use advanced Time Division Multiple Access ("TDMA") IS-136
technology, which AT&T Wireless Services has successfully deployed in more
than 100 markets. Cincinnati Bell Wireless will sell PCS equipement and
services from retail stores in Cincinnati and Dayton, via a direct sales
force and via other retail channels. The services will include a complete
array of value-added digital calling features including Caller ID, paging,
voicemail and E-mail delivery.
The Company expects the acquisition cost and start-up phases of the
venture to be dilutive to its financial results in the near term. It expects
that the venture would reduce its
anticipated 1998 earnings per share about 15 cents. The Company's goal is for
the venture to become a positive contributor on a cash basis after three
years and on a net income basis after four years.
Certain portions of the joint venture transaction are subject to the
approval of the Federal Communications Commission. The companies anticipate
that the transaction will close later this year.
FORM 8-K CINCINNATI BELL INC.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
Cincinnati Bell Inc. has duly caused this report to be signed on its behalf
by the undersigned thereunto duly authorized.
February 2, 1998
CINCINNATI BELL INC.
By:/s/ BRIAN C. HENRY
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Brian C. Henry
Executive Vice President and
Chief Financial Officer