NBC President Robert Wright has threatened to convert NBC from broadcast to cable in cities where the network can't negotiate an acceptable financing deal with its local affiliate. NBC and Walt Disney's ABC are trying to revamp their contracts with affiliates to force them to shoulder more of the network's programming costs. Microsoft is in talks to partner with Deutsche Bank and bid for the German cable properties. Another player is former the president of US West's International Operations, Richard Callahan. He is partnering with several financial backers and would run the company if they win.
Initial bids are due today.
Now 3 of 5 Illinois Commerce Commission commissioners agree that all of the savings generated by the merge should go to the ratepayers who paid to build Ameritech's system. The savings are expected to stem from combining administrative, legal, operating and other functions of the two telephone companies to eliminate waste and heighten efficiencies. The FCC is also reviewing the merger and is plans to act by early September. Yet another alternative to regular phone service is coming of age as people are using their PC's to make free telephone calls to other PC users. Another boost for the technology is that Internet connections are faster so the sound quality is comparable to traditional phone service.