Robert Virzi <rv01@gte.com> (07/13/90)
** NEWS** GTE Corp. and Contel Corp. today jointly announced they they have agreed in principle to merge the two telecom giants. The value of the transaction is $6.2 Billion. Combined local exchange operations will serve 17.7 Million access lines, making it the countries largest LEC. Combined cellular operations will serve apprx. 50 Million POPs, making it the second largest cellular provider. Both companies seem to be strongly interested in CATV, with Contel already owning several franchises. ** QUESTIONS ** Where are Contel franchises? (Both telephone and CATV) Why did GTE stock drop (albeit a small amount) while Contel and Contel Cellular stocks went up? I suspected something was up when I noticed that GTE had been on the NYSE most active list several times in the past week. I guess someone made a killing. Anyone care to guess on future stock prices? What is Contel's reputation? I have heard that they are one of the more innovative telcos, pushing into CATV, videotex, and other interesting services at a fast pace. What sort of network does Contel have? I know they don't use the GTD-5 because (rumor has it) we (GTE) have only sold one outside the corporation to Ameritech. Are they largely digital or X-bar or worse? Finally, are there likely to be objections raised to the merger by the FCC or SEC? If so, on what grounds?
bakerj@ncar.ucar.edu> (07/14/90)
In article <9646@accuvax.nwu.edu>, rv01@gte.com (Robert Virzi) writes: > What sort of network does Contel have? I know they don't use the > GTD-5 because (rumor has it) we (GTE) have only sold one outside the > corporation to Ameritech. Are they largely digital or X-bar or worse? Numerous GTD-5's have been sold to independents across the country. I can't find the exact numbers right now, but it's probably on the order of several hundred thousand lines. Don't know if Contel was one of them.
John Higdon <john@bovine.ati.com> (07/14/90)
Robert Virzi <rv01@gte.com> writes: > ** QUESTIONS ** You bet -- questions. This is all probably the worst news for telephone users to come along since the MFJ. > Where are Contel franchises? (Both telephone and CATV) Among other places, Contel service California's high desert areas and also serves the nearby town of Gilroy here in my area. > Why did GTE stock drop (albeit a small amount) while Contel and Contel > Cellular stocks went up? Among other things, they want to make this an attractive deal to Contel share holders, so that they can get approval at that level. > What is Contel's reputation? I have heard that they are one of the > more innovative telcos, pushing into CATV, videotex, and other > interesting services at a fast pace. Unlike GTE, Contel seems to have a committment to the customer to provide solutions to requirements. Contel has done extensive upgrading of its facilities in the past few years. In the old days, they used crossbar while GTE was mired in SXS. > What sort of network does Contel have? I know they don't use the > GTD-5 because (rumor has it) we (GTE) have only sold one outside the > corporation to Ameritech. Are they largely digital or X-bar or worse? They are now largely digital, although in some of the real backwater places there is still some XY and SXS. In Gilroy, they did unfortunately install some 1EAX, but in most areas they have either 5ESS (example: Barstow) or DMS (example: Victorville). > Finally, are there likely to be objections raised to the merger by the > FCC or SEC? If so, on what grounds? I don't know what the regulatory agencies will object to, but I can give you a few of my own. First, GTE operates their utility as if it was the water or gas company. Interest in telephony takes a distant back seat to the business of business. (Those of you that work for GTE in laboratories or R&D, save your breath -- I'm speaking from a customer's point of view, which is what the regulatory bodies should be considering.) GTE loves to consolidate. When you try to call the business office at some 800 number, you get perpetual busy. When you finally break through, you are put on permanent hold. When I call the "local" GTE business office, the call goes to Thousand Jokes -- about 300 miles away. Contel, on the other hand has a business office right there in Gilroy -- serving all two of Gilroy's prefixes. When I tried to pay a Victorville Contel phone bill there, they were very nice and handled it for me, but they had to call Victorville to make the arrangements. They are not centralized and it's a plus for the customer. The same thing applies to repair service. When you dial 611 from here in Los Gatos (GTE) do you get anyone local who can help? No, indeed. What you get is some EEOC-requirment-fulfilling person (hired not because they are adept at taking trouble calls, but because they keep some other government agency at bay) who tries to take your report. Sometimes you have to spell "reorder" and "distortion". Contel routes your call to the nearest *local* center, and within short order you can deal with the very person who will repair your trouble (much like Pac*Bell). I would advise Contel customers to run, not walk, to the nearest typewriter and protest in the strongest terms to any and all requlatory agencies that must approve this merger. I have always had the highest respect for Contel and it would be the century's biggest disaster to see it merge with the sorriest excuse for a telephone company this country has ever known. John Higdon | P. O. Box 7648 | +1 408 723 1395 john@bovine.ati.com | San Jose, CA 95150 | M o o ! [Moderator's Note: So John, just about the time you thought you had seen it all; about the time you thought nothing could be worse than the disaster Harold Greene has made of the public telephone network with his MF Judgment -- some folks, you know, say that 'MF' means something other than 'Modified Final' :) -- about when you had learned to live and cope with the travesty; along comes this newest affront. I quite agree with you. Wave bye-bye to Contel, everyone! PT]
marc@ttc.uucp (Marc O'Krent) (07/18/90)
In article <9695@accuvax.nwu.edu> John Higdon <john@bovine.ati.com> writes: >GTE loves to consolidate. When you try to call the business office at >some 800 number, you get perpetual busy. When you finally break >through, you are put on permanent hold. When I call the "local" GTE >business office, the call goes to Thousand Jokes -- about 300 miles >away. Contel, on the other hand has a business office right there in >Gilroy -- serving all two of Gilroy's prefixes. When I tried to pay a >Victorville Contel phone bill there, they were very nice and handled >it for me, but they had to call Victorville to make the arrangements. >They are not centralized and it's a plus for the customer. As another example of the "intelligence" behind GTE, the business office here in LA had an 800 number that ended on 7713. When you dial that number, you now get a referral recording to the same NPA with the last four = 7712!! I suppose a bigger customer came alone and just had to have 7713. Marc O'Krent The Telephone Connection Internet: marc@ttc.info.com MCIMail: mokrent Voice Mail: +1 213 551 9620