AT&T Co and Kokusai Denshin Denwa Co are joining forces with China’s Directorate General of Telecommunications in a $65m effort to upgrade the international phone system in the People’s Republic: satellite earthstations to provide digital speech and data communications to major office buildings in Peking and Shanghai will be installed by next year, to be followed by an 800-mile undersea fibre optic cable with 35,000 call capacity linking Shanghai with Kyushi Island, Japan, with service to start in late 1993.