AT&T Co and Telefonica de Espana SA concluded a broad-brush agreement that completes the swap of Telefonica’s 20% of AT&T Microelectronica de Espana for 6% of AT&T Network Systems International. Telefonica will participate with AT&T in initial planning to help define needs and opportunities for new AT&T kit in the global market. The two will jointly offer global network services to multinational companies that will facilitate the provision of custom networks integrating voice, data, facsimile and video. They will plan a fibre-optic undersea cable with Telefonos de Mexico SA and Italcable SpA linking Mexico, the Caribbean, the US, Spain and Italy for completion in late 1994. AT&T’s Switched Digital International service will be connected to Telefonica’s ISDN service and a new international virtual private network will be created by linking Telefonica’s Ibercom to AT&T’s Global Software Defined Network service. AT&T USADirect will be added.
