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One hundred four years of editorilfreedom
Thursday
September 21, 1995
Vol CV No 12 AnArc, "Mcia I;_Q195teM ia:H
I
T&T to
NEW YORK (AP) - AT&T Corp. is splitting
nto three companies in a stunning move that could
elp it get back into local phone service, the
usiness it was forced to give up in the 1984
reakup of Ma Bell.
The telecommunications giant is also scrapping
ts personal-computer manufacturing business,
cknowledging that its 1991 merger with NCR
orp. was a disaster.
"AT&T is reinventing itself once again," chair-
an Robert Allen said yesterday.
AT&T will break into companies that will focus
n communications services, communications
quipment manufacturing, and manufacturing of
arge computers. Shareholders will get a stake in
ach new company.
split into three companies
Will drop personal-computer line
The move - which by some measures is bigger
even than the 1984 breakup of AT&T - stunned
Wall Street, which has seen one colossal merger
after another in the telecommunications and enter-
tainment industries.
Founded as Bell Telephone in 1877 by Alexander
Graham Bell, AT&T has built itself into a giant
whose stock is the most widely owned in the nation
and is said to be a part of every widow's portfolio.
In 1984, facing a government antitrust suit,
AT&T agreed to split into seven regional Baby
Bell phone companies in a settlement that spawned
the era of global telephone competition.
Under the settlement, AT&T is barred from buy-
ing a Baby Bell, which would reconstitute AT&T's
monopoly over local and long-distance service.
However, once AT&T sets up a separate tele-
phone equipment manufacturing company, the
communications-services company becomes free
to pursue a partnership with a Baby Bell.
Legislation now in Congress would make it
even more attractive for AT&T and other compa-
nies to enter the local phone business.
"This restructuring of AT&T is the next logical
turn in our journey since divestiture," Allen said.
"In recent months it's become clear to me that for
AT&T's businesses to take advantage of the in-
credible growth opportunities in every part of the
information industry it has to separate into smaller
and more focused businesses."
The communications services business, which
includes long-distance, cellular service and credit-
card calling, will retain the AT&T name. Names
for the others have not been selected.
AT&T's computer operation will eliminate
8,500 of 43,000 jobs this fall in a move expected
to cost $1 billion. The company will quit making
personal computers - an area where competitors
operate more profitably - but continue to manu-
facture larger computer systems.
AT&T Breakup
AT&T Corp. announced yesterday it
is splitting into three companies,
possibly to help it get back into
local phone service.
The three companies will focus on
communications services,
communications equipment
manufacturing and manufacturing
of large computers.
AT&T will quit producing personal
computers, eliminating 8,500 of
the 43,000 related jobs.
The company's shares were up
$6.12 1/2 at $63.75 on the New
York Stock Exchange at the close
of yesterday's trading.
The Justice Department said it will
- review AT&T's plans but noted
that corporate spinoffs do not
typically raise antitrust concerns.
Studei
mae
addre
Michelle Lee Thompsot
ly StaffReporter
For the first time in rec
e University Board of R
ear today from a student
ive - Michigan Student
sident Flint Wainess -
he regents' regular meetin
Wainess will be among
peak at the monthly mee
egins at 2 p.m. today.
"I'm very excited," Wain
yves credibility to studentg
Regent Deane Baker (R-
aid he did not expect Wain
s a student representative t
ificantly from the MSA
omments to the regents in
Baker also said Wainess'
SA president will not afi
he board interprets his con
"The regents respect n
pinion, but the opinions o
tudent body," Baker said.
Wainess said he does no
he biannual address to g
ccount of the assembly's,
e is hoping to initiate a
-irrent projects.
"This opportunity won'
used to make demands or bi
new issues," Wainess said
"Sometimes it's simply a va
to discuss ongoing project
Wainess said he will di
On-line, the assembly's nev
discussion forum, and inc
turnout at recent assembly
He also said he plans to
MSA's concerns about car
issues and the actions of the
that is suggesting revisions
ment of Student Rights an
at rep.to
1st biannua
s to regents
I
On the Agenda
ent history, Along with an address from MSA
egents will President Flint Wainess, the
representa- University Board of Regents will
t Assembly discuss several other issues.
- as part of
g agenda. The regents are scheduled to
the first to vote on the creation of the
ting, which Institute for Research on Women
and Gender, which.will be
tess said. "It proposed by Vice President for
overnment." Research Homer A. Neal.
Ann Arbor)
ess' address The regents also plan to discuss
o differ sig- the "Welcome to Michigan '95"
presidents' activities today.
xthe past.
position as Public Comments will be at 4
fect the way p.m. in the Anderson Room of the
mments. Michigan Union.
ot only his
of the entire bilities -the University's code ofnon-
academic conduct.
t plan to use The workgroup, composed of stu-
ive a direct dents, is submitting suggestions to Vice
actions, but President for Student Affairs Maureen
dialogue on A. Hartford, whose office will rewrite
the code.
t always be "We want to make sure students have
ring up fresh ample time to comment on the drafts,"
d yesterday. Wainess said, adding that he was con-
aluable time cerned that the workgroup's drafts had
not yet been made public.
scuss MSA "The openness or lack thereof will be
w electronic a topic," Wainess said.
reased voter Wainess, speaking for his first time
elections. as a student representative to the board,
address the said he did not wish to air a lengthy list
mpus safety of complaints.
e workgroup "I don't think it's prudent to go in
to the State- there and ... list every problem with the
d Responsi- University community," Wainess said.
T i -
I
'U' expects
phased out
By Kate Glickman
For the Daily
The Michigan Terminal System is
entering its final year, requiring stu-
dents and faculty who have resisted the
change to UNIX to finally make the
switch.
The Univer-sity's Information Tech-
nology Division has tentatively planned
to phase out MTS by July 1, 1996,
replacing it with
the more user-
friendly, UNIX-
based Pine elec-
tronic mail pro- problems
gram.
"It is no longer 'TS W
cost-effective to7
provide the erased
(MTS) service to
the University," and lost
said Mike Clark,
ITD director of a$dd e
operations man-
agement. p o l
ITD subsidized
MTS's costs with lO&aiOns
fees charged to Br
customers out-
side the Univer- _
sity, Clark said,
MTS to be
byJuly'96
can be time-consuming, LSA junior
Brian Drozdowski said he is happy to
make the change to Pine.
"I had several problems with MTS,
including erased messages and lost e-
mail addresses of people in other loca-
tions," he said. "The benefits of Pine
outnumber MTS because of the fea-
tures available."
While ITD has tried to help students
transfer informa-
tion, some stu-
veraldents said ITD
shoulddomoreto
Swith help them switch
to Pine.
ruding LSA senior
Marion Wilder-
man said she was
not informed
eum ail about the change
and the ITD did
Nubian artifacts to
be displayed at
Kelsey Museum
Above: Jennie Wilson, an assitant
registrar for traveling exhibitions from the
University of Pennsylvania Museum, puts a
ceramic head onto a cart to be prepared
for a display of Nubian artifacts, which
opens next Friday at the Kelsey Museum.
Left: Dana Buck, the exhibitions
preparer for the Kelsey Museum, places a
Nubian ceramic tablet dating from 100
B.C. to 400 A.D. on a stand for the exhibit
Photos by ELIZABETH LIPPMAN/Daiiy
Republicans press for cuts in
student loans, Medicare, Medicaid
Sother
iff
ian Drozdowski
LSA junior
not publicize it
well.
"Just mail out a
flier, or put some
fliers out," she
said. "The only
fliers I have seen
have been full of
cyber-language."
WASHINGTON (AP) - Under relentless at-
tack from the Democrats, Republicans targeted
health care for the poor, student loan programs
and numerous smaller accounts yesterday as they
pressed ahead with a sweeping plan to balance the
budget by 2002.
"We have a schedule to meet and we intend to
meet it," said Rep. Thomas Bliley (R-Va.), brush-
uges would be opened to oil and gas drilling. A few
pennies would be saved - for each of millions of
veterans - by rounding annual cost-of-living in-
creases in government benefits down to the nearest
dollar.
A plan to impose a fee on colleges and universi-
ties equal to 2 percent of their total of student loans
ran into trouble from some Republicans, and Sen.
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