04/08/96 TABLE: Titans of Telecom

Titans of Telecom

Today's communication giants are scrambling to offer local calling, long distance, wireless, and video transmission. Theses markets will together add up to more than $1 trillion in annual sales. Their ultimate goal--building "convergence conglomerates" that can satisfy every communications need. COMMUNICATIONS TECHNOLOGIES TWISTED PAIR: This ubiquitous phone wiring, consisting of two copper wires twisted around each other, hasn't changed significantly since 1879. But using sophisticated electronics, phone companies can load it up with lots of data and video over short distances. COAXIAL CABLE: Thousands of miles of coax bring cable TV to two-thirds of U.S. homes. The wiring has great potential for voice and data, too. Cables consist of an insulated central wire, or axis, within a metal cylinder (hence "coaxial"). OPTICAL FIBER: By sending pulses of light through a strand of glass--rather than pumping electrons across a wire--fiber-optic technology is fastest. Scientists have sent 1 trillion bits per second--that's 12 million simultaneous phone calls--over a single fiber. CELLULAR: The world's favorite form of wireless calling. A region is carved into different "cells," each with its own antenna. Calls are handed off from cell to cell. PCS: Personal communications services that work on signals that don't travel as far as cellular, so PCS requires more, but cheaper, antennas to cover a region. BROADCAST TV: TV channels occupy a huge swath of prime airwave real estate. With digital technology, each channel will be able to carry one super-high-quality TV channel, or as many as 10 compressed channels. DBS: Direct-broadcast satellite from the likes of DirecTV offers very high-quality video and lots channels. THE TITANS OF TELECOM GTE Unlike the Baby Bells, GTE can enter in-region long distance immediately and intends to do so in all its markets by yearend. - $19.96 Billion -Long Distance -Local Calls -Wireless -Video PACIFIC TELESIS California's phone company is sure to face lots of competition in its home market while at the same time absorbing heavy costs of building it PCS network. - $9.04 Billion -Long Distance -Local Calls -Wireless -Video US WEST Its $10.2 billion takeover of Continental Cablevision and its 25% stake in Time Warner Cable gives US West access to 13 million cable subscribers. - $9.48 Billion -Long Distance -Local Calls -Wireless -Video AIR TOUCH COMMUNICATIONS PacTel's former cellular operation has teamed with US West, Bell Atlantic, and Nynex to build a nationwide wireless network. - $1.59 Billion -Wireless TCI Tele-Communications, the nation's largest cable operator, is in wireless and local calling ventures with Sprint and owns 25% of Teleport. - $6.77 Billion -Long Distance -Local Calls -Wireless -Video SPRINT Sprint's joint venture with three of the largest cable operators gives it access to 39 million homes, but squabbling among the partners could scuttle the effort. - $12.77 Billion (after spin-off of 360 degrees cellular) -Long Distance -Local Calls -Wireless -Video 360 DEGREES Cut loose from former parent Sprint, 360's 1.5 million subscribers are scattered in small markets. - $834 Million -Wireless COMCAST CORPORATION The fourth-largest cable operator owns several cellular networks and the QVC shopping network. It is a member of the Sprint partnership. - $3.36 Billion -Long Distance -Local Calls -Wireless -Video AMERITECH Already moving into cable and long distance. Regulators in its region are allowing it to enter new markets. - $13.43 Billion -Long Distance -Local Calls -Wireless -Video SBC Is geography destiny? Texas' vast distances mean little competition. It is one of the nation's largest cellular operators. - $12.67 Billion -Long Distance -Local Calls -Wireless -Video BELLSOUTH BellSouth has a conservative diversification strategy but it is the first Bell to offer local service outside its region. - $17.89 Billion -Long Distance -Local Calls -Wireless -Video AT&T Sixty percent of the long-distance market and a brand that is synonymous with phones make AT&T the one to beat. It also owns the largest cellular network and a stake in the DirecTV DBS system. - $47.28 Billion (after divestiture of Lucent Equipment Unit and NCR) -Long Distance -Local Calls -Wireless -Video TIME WARNER The first cable operator to offer local calling. Its proposed acquisition of Turner Broadcasting will turn it into a multimedia machine. - $8.07 Billion -Long Distance -Local Calls -Wireless -Video BELL ATLANTIC A leader in developing technology to send video over phone lines, it was first to enter long distance outside its region, and its wireless partnership with Nynex could lead to the first Bell megamerger. - $13.43 Billion -Long Distance -Local Calls -Wireless -Video NYNEX With more local competition than any other Bell, Nynex may be the first allowed into in-region long distance. - $13.41 Billion -Long Distance -Local Calls -Wireless -Video MCI Great marketing abilities, but no diversity. MCI gets almost all its revenues from just one business--long distance. - $15.27 Billion -Long Distance -Local Calls -Wireless -Video