MCI deal in mobile phones collapses
Tuesday 30 August 1994
MCI agreed in February to invest dollars 1.3bn in NexTel, joining the cable television operator Comcast in transforming the mobile radio network into a national wireless telephone system.
MCI was to have spent dollars 800m this year buying 22 million shares in NexTel, giving it a stake equal to the 17 per cent Comcast already owns. The two partners also agreed to spend an additional dollars 500m each over the next three years to give them joint control of the company, which is America's largest radio- dispatch network.
But share prices of all three communications companies have been buffeted by regulatory changes in cable television and by the entry of new competitors in the personal communications market.
The NexTel link-up would have allowed MCI, a long-distance communications network with no direct access to local telephone subscribers, to bypass local telephone exchanges, which at present account for almost half its costs. The wireless service was to have been operational in 10 cities by the end of the year and would have competed with cellular service.
Earlier this year BT completed the purchase of a 20 per cent share in MCI, America's second- ranking long-distance carrier, for dollars 4.3bn.
Yesterday NexTel, MCI and Comcast said they had terminated their original agreement but would explore the possibility of a strategic alliance 'on different terms'.
- 1 Rice Bucket Challenge: India's take on the Ice Bucket Challenge 'for Indian needs'
- 2 Pamela Anderson rejects ice bucket challenge because of ALS experiments on animals: 'Mice had holes drilled into their skulls'
- 3 ALS ice bucket challenge co-founder Corey Griffin drowns, aged 27
- 4 Rubble Bucket Challenge: Ice Bucket Challenge adapted in solidarity with Gazans whose homes have been destroyed in conflict
- 5 Car tax disc changes: Make sure you know the new rules from 1 October or risk £1,000 fine
Pamela Anderson rejects ice bucket challenge because of ALS experiments on animals: 'Mice had holes drilled into their skulls'
ALS ice bucket challenge co-founder Corey Griffin drowns, aged 27
The 13 obscure UK laws you didn’t know you were breaking
13 laws you didn't know you were breaking
Car tax disc changes: Make sure you know the new rules from 1 October or risk £1,000 fine
Exclusive: We share blame for creating 'jihad generation', says Muslim strategist
Robin Williams Emmys tribute led by Billy Crystal criticised for including 'racist' joke about Muslim woman
The Rotherham child abuse scandal is a tale of apologists, misogyny and double standards
Scottish independence TV debate: Pumped-up Alex Salmond bounces back in bruising second round against Alistair Darling
Jeremy Clarkson is a cultural tumour and needs to be removed, says comedian Frankie Boyle
Air strikes? Talk of God? Barack Obama is following the jihadists’ script after James Foley beheading
- < Previous
- Next >
iJobs Money & Business
£23000 - £26000 per annum: Ashdown Group: Account Executive / Client Services ...
£36000 - £38000 per annum: Ashdown Group: Executive PA to CEO & Executive Dire...
£25000 - £28000 per annum: Ashdown Group: Generalist HR Administrator - Tunbri...
£30-35k + Excellent Benefits: Guru Careers: We are seeking a Management Accoun...