View all newsletters
Receive our newsletter - data, insights and analysis delivered to you
  1. Technology
July 12, 1987

GTE, UNITED TELECOM TO TAKE FURTHER $350m WRITE-OFF ON US SPRINT

By CBR Staff Writer

GTE Corp and United Telecommunications Inc will be taking substantial charges – $55m net for GTE, $109m net for United Telecom – with their second quarter figures to cover additional write-offs at their equally-owned US Sprint Communications long-distance telephone joint venture. The total to be written off is $350m, $260m of which is to account for depreciation and lease costs of the old long-distance lines, which are being replaced by the company’s new 23,000 mile fibre optic network. US Sprint has been transferring telephone traffic to the fibre optic network sooner than it had planned, and accordingly has to accelerate depreciation of the old network. Another $14m is for leased office space no longer occupied, and $76m is a monumental bad debt provision against money the phone company doesn’t expect to be able to collect because its billing system is apparently in a shambles. It was discovery of the billing problems that reportedly led to the resignation of president Charles Skibo, who has been replaced by the company’s vice-chairman and chief operating officer Robert Snedakar.

Websites in our network
Select and enter your corporate email address Tech Monitor's research, insight and analysis examines the frontiers of digital transformation to help tech leaders navigate the future. Our Changelog newsletter delivers our best work to your inbox every week.
  • CIO
  • CTO
  • CISO
  • CSO
  • CFO
  • CDO
  • CEO
  • Architect Founder
  • MD
  • Director
  • Manager
  • Other
Visit our privacy policy for more information about our services, how New Statesman Media Group may use, process and share your personal data, including information on your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.
THANK YOU