Word: ameritech
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...using the McCaw link to surreptitiously re-enter the local phone business. They want the Federal Communications Commission either to force AT&T to dissolve its McCaw alliance, or to lift the ban prohibiting local phone companies from offering long- distance service. Says Richard Brown, vice chairman of Ameritech, the Chicago-based Baby Bell: "AT&T is trying to put Humpty-Dumpty back together again...
...their ultimate high-tech fantasy: the Integrated Services Digital Network. ISDN is the phone industry's grand scheme to be the dominant conduit for every conceivable communications service -- from faxes, newspapers and video conferencing to home shopping, radio broadcasts and TV. At least seven phone companies, including Pacific Telesis, Ameritech and BellSouth, are developing the ISDN software for special fiber-optic wires that can carry such multimedia information. But the companies need state regulatory approval for telephone-rate increases to cover installation costs. Public service commissions, however, have been reluctant to let companies raise phone bills to recover the investment...
Many executives are adopting a show-me attitude. Says William Weiss, chairman of Ameritech, a Baby Bell phone company that serves five Midwestern states: "Despite what the Fed chairman says, I don't sense that business feels any strong sense of recovery. The government may have to play the role of cheerleader, but I wouldn't be as optimistic. We still have deep liquidity and credit problems that make it increasingly difficult for businesses to finance their way back...
...customers convinced that they were worse off, even though long-distance competition has brought better rates. Indeed, according to a scorecard published in November by Communications Week, local service and repair are now fairly inconsistent across the U.S. The trade publication gave the top grade of A-minus to Ameritech, which serves Illinois, Indiana, Ohio, Wisconsin and Michigan. The lowest grade of C-plus went to Southwestern Bell (Arkansas, Kansas, Missouri, Oklahoma and Texas) and NYNEX (New York and New England...
...with his wife Barbara in Tamarac, Fla.: "I get a raise, and for a couple of months things seem more comfortable. Then inflation catches up with me. It's a treadmill." In Parma, Ohio, Lynda Smith, 37, a mother of two, agrees. The wife of an engineer for Ameritech, a regional phone company, she drives 30 miles round trip to stock up on canned goods at a discount grocery store. Says she: "Whenever my husband gets a raise, utilities, taxes or something else goes up. I don't think we're any better off in terms...