The United States and European Union negotiated a compromise on data privacy that could pave the way for a final deal this summer. An agreement on data privacy is key to future transatlantic business, including that involving wireless telecom trade.
Scott Cleland, a telecom analyst at Legg Mason Wood Walker, predicted the Justice Department will oppose a proposed merger between MCI WorldCom Inc. and Sprint Corp. even if the two firms agree to divest Sprint’s Internet backbone. Cleland said government rejection of the deal could prompt MCI WorldCom to reconsider buying Nextel Communications Inc., while leaving Sprint open to bids by Deutsche Telekom, BellSouth Corp., Quest Communications International Inc. and others.
Congress passed legislation to privatize the International Telecommunications Satellite Organization and the International Maritime Satellite Organization, a move designed to inject competition into the global satellite business. The vote clears the way for Comsat Corp., the U.S. signatory to Inmarsat and Intelsat, to close on its merger with Lockheed Martin Corp.
Legislation was introduced in Congress to accelerate the deployment of broadband and competitive services by independent telephone companies. The bill is sponsored by Reps. Barbara Cubin (R-Wyo.), Bart Gordon (D-Tenn.), Chip Pickering (R-Miss.) and Thomas Barrett (D-Wis.).
President Clinton applauded a United Negro College Fund announcement that a technology capital fund was created to promote digital technology at historically black colleges across the country. Microsoft Corp. contributed $50 million to the fund, and UNCF said it had commitments from IBM Corp. and AT&T Corp. The administration is working to close the gap of what it calls a `digital divide.’
The American Electronics Association said the United States exported a record $181 million in high-tech components last year, but the net result was a $40 billion trade deficit for the industry because the United States imported assembled products with American electronics.
