GTE Corp management has told its shareholders that the company’s approach to the expanding European mobile communications market will be more rational and practical than that adopted by the Baby Bells. Charles Lee, president and chief operating officer of GTE, last week said that the Baby Bells, pounding their chests to the Europeans, have been naive in their approach to mobile commmunications this side of the Atlantic. In recent months, BellSouth Corp (CI No 1,160) and Bell Atlantic Corp have, in particular, talked of their ambitious plans to be at the forefront of European mobile communications – and put up the necessary investment. Mr Lee, saying that GTE wants to offer a 20% return on equity in the next few years, confirmed that GTE does have plans for European expansion, but has yet to find an opportunity in mobile communications in Europe that is appropriate. GTE’s corporate strategy will centre on its three core business, telecommunications, lighting and precision materials. The company’s telephone business has undergone major reorganisation; marketing functions have been centralised, the company’s seven autonomous local phone companies have been brought together, and the workforce is being cut. GTE claims the reorganisation has enabled it to establish the first one-stop shop for cellular service US-wide (CI No 1,172), and double its mobile customers in 1988.
