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March 27, 1988

AGREEMENT BETWEEN AT&T AND COMMUNICATIONS SATELLITE

By CBR Staff Writer

International phone calls from the US could become cheaper after approval of a new agreement between AT&T Co and Communications Satellite Corp: up to now, AT&T has had to route 50% of international calls via Intelsat, 25%-owned by Comsat, although undersea cable is cheaper, but for the next seven years, it has agreed to take 20,000 satellite circuits but to route only 34% of the growth in international traffic through Intelsat, so that the proportion will shrink to under 50%.

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