December 13, 1996 11:00 AM ET

Bell Atlantic, Nynex re-evaluate wireless video
By Margaret Kane

Bell Atlantic Corp. and Nynex Corp. have suspended a deal with CAI Wireless Systems Inc. to develop wireless video networks, the companies announced today. The trio cited changing market conditions in the entertainment field and the technical availability of fiber-based full-service networks as factors in their decision to halt the project, which included a $100 million investment by Bell Atlantic and Nynex in CAI, of Albany, N.Y. CAI will now be given the option of buying back the securities purchased by the two Baby Bells. The project involved using CAI's MMDS (Multichannel Multipoint Distribution Service) to broadcast video. Tests planned for next year in Boston and Hampton Roads, Va., will be suspended. Bell Atlantic currently provides video programming over its fiber network in Toms River, N.J., and plans to deploy switched digital video in Philadelphia. Nynex signed a deal in October with General Instrument Corp. to deploy switched digital transport electronics in Boston and New York for voice applications. CAI will continue to test mixed use of MMDS and has requested approval from the Federal Communications Commission to conduct a trial in Hartford, Conn., officials said. Copyright(c) 1996 Ziff-Davis Publishing Company. All rights reserved. Reproduction in whole or in part in any form or medium without express written permission of Ziff-Davis Publishing Company is prohibited. PC Week and the PC Week logo are trademarks of Ziff-Davis Publishing Company. PC Week Online and the PC Week Online logo are trademarks of Ziff-Davis Publishing Company. Send mail to PC Week