A New York-New England phone linkup
Two American Telephone & Telegraph subsidiaries have united under one name and structure, Monitor correspondent Ron Scherer reports. NYNEX (pronounced ''nine-x'') will be the new name of New York Telephone and New England Telephone, which will be merged as one of seven new telephone organizations to be formed under the terms of an antitrust settlement consent decree.
NYNEX, to be headquartered in New York City, will provide financial management, strategic planning, administrative support, and procurement of goods and services for the two telephone companies and three subsidiary ventures.
NYNEX, which will serve 12 percent of the country's population, will also provide its subsidiaries with pricing strategies. NYNEX officials said they expected to be ''very competitive'' with other deregulated telecommunications companies, such as MCI Communications and GTE's Sprint service.
The area served by the new company is a region strong in financial services, insurance, and communications and represents 15 percent of all the installed data processing equipment in the country. In addition, a total of 119 of the Fortune 500 companies are headquartered in the Northeast quadrant.
NYNEX will issue its own publicly traded stock under the symbol ''NYN,'' and the New York Stock Exchange will begin trading it in the fourth quarter.