Gte Lands Cellular Deal
Ameritech Corp., looking for federal regulators to bless its planned merger with SBC Communications, is selling nearly half of its cellular interests to GTE Corp., the phone company that’s seeking to merge with Bell Atlantic Corp.
The $3.3 billion deal is the latest move in an industry scramble of acquisitions and alliances aimed at luring corporate customers - the most profitable portion of the telecommunications market - with national and global networks that offer a wide array of calling, Internet and media services.
“SBC-Ameritech and Bell Atlantic-GTE are gathering assets to compete with the AT&T’s and MCI Worldcom’s of the world,” A.G. Edwards analyst Joseph Eshoo said Monday. “It’s coming down to four large international telecom carriers who will be competing aggressively for the best customers.”
The deal announced Monday would make a combined Bell Atlantic-GTE the biggest U.S. wireless carrier with 13 million subscribers, including 1.7 million Ameritech customers in the Chicago and St. Louis areas and northwest Indiana.