The regional telephone companies, as well as AirTouch Communications Inc. and GTE Corp., have collectively invested more than $10 billion in international telecommunications ventures, according to a report issued by Decision Resources Inc.
In 1996, the regional telephone companies together had 4.9 million proportionate international cellular subscribers. AirTouch led the group with 1.7 million proportionate international cellular subscribers, followed by BellSouth with 1.3 million subscribers, said the report.
According to the report, AirTouch historically has focused on international wireless ventures rather than wireline or cable opportunities.
The company has interests in 13 companies in 11 countries as well as an investment in the Globalstar consortium now building a satellite network. The company also has a paging presence in Europe.
AirTouch has a strong presence in Germany and Japan, a solid presence in Italy and Spain and an emerging presence in Belgium, Portugal, South Korea and Sweden, said the report. AirTouch also has start-up operations in India and Romania.
The company has had success with its conservative investment strategy, which includes selecting strong local partners in countries with fairly stable economies and large potential customer demand, said the report.
AirTouch operates according to a model that calls for a rapid infrastructure build-up, a broad base of distribution channels to sell cellular service, depth of service beyond voice, a reduction in per-unit cash costs that is more rapid than the decline in average monthly revenue and a rapid return on investments.
BellSouth’s international focus also is almost entirely on wireless ventures, said the report. The company has a significant presence in Latin America and the Asia-Pacific region, as well as some interests in Europe and the Middle East.
BellSouth’s typical approach to international investing is to purchase a significant share of a company and play a major role in its management. The company has tended to focus its Latin American investments in countries with low teledensities and cellular penetration rates, said the report.
GTE Corp. and Ameritech led the regional telephone companies in investments in international fixed wireline services, and U S West International and Nynex Corp. (now part of Bell Atlantic) led in investments in international cable TV and cable telephony services.
