****CELLULAR PHONE CANCER WORRIES WILL NOT GO AWAY WASHINGTON, DC, U.S.A., 1993 JUL 19 (NB) -- At a major press conference on Friday, representatives of the cellular phone industry said that there is no cancer risk associated with the use of hand- held cellular radio telephones, but they could not cite a single study that specifically supports claims for the safety of hand-held cellular phones. A law suit brought six months ago charged that a cellular phone had contributed to the death of an executive by promoting brain cancer and, ever since then, the industry has been trying to convince the public that their devices are perfectly safe. At last week's press briefing the industry retracted its earlier contention that "thousands" of studies showed the safety of hand- held cellular telephones, instead citing about 100 studies, but when asked which of those scientific studies were specifically concerned with the use of hand-held cellular telephones, cellular industry representatives were unable to point to a single study that explicitly looked at how these relatively new products are actually used. Although still contending that there is no safety question, the industry has boosted safety-related research funding from less than $1 million per year to about $15- to $25-million. Louis Slesin, editor of Microwave News, said on Monday's CNN Business Day program that the study group funded to evaluate the effects of cellular phone radio frequency emissions on users is overweighted with industry advisors and includes no impartial industry critics. Unable to cite actual statistical studies of cellular phone users to prove safety, the industry instead had to be content with the statement that an extensive study of the literature had been unable to uncover any solid evidence that cellular phone radio waves actually caused pre-cancerous changes in the body's cells. Dr. George Carlo, Chairman of the Health & Environmental Science Group, studying health dangers of cellular phones on behalf of the Cellular Industry Association, said that no studies they have seen show any mechanism whereby cellular phone emissions could cause cancer. This is a very different thing from proving that they are actually safe. What it actually means is that they don't know, and in point of fact, such a statement may mean little or nothing either way. It doesn't mean that the phones are safe, or that they aren't. Concerns surrounding cellular phone safety center on possible damage to human cells caused by the relatively intense electromagnetic fields generated by the tiny antennas which hand-held phones place so close to the human head, not the general presence of radio frequency waves in the environment or even the fields generated by car phones which use external antennas and therefore cause a much weaker field at passenger's bodies. The concerns about the phones' possible contribution to brain cancer or eye damage (a subject not addressed at all by the industry) are also unsupported by convincing scientific evidence, but that only means that no one actually knows whether or not they are safe and some users and potential users think that "better safe than sorry" is a good policy when it comes to any chance of getting cancer. Actual statistical health studies of hand-held cellular phone users won't begin until next year at the earliest. There is some statistical evidence that ham (amateur) radio operators, people who routinely expose themselves to intense radio frequency electromagnetic fields, are more prone to certain kinds of cancer. The sort of portable telephones used by many home owners who plug a base station into their regular telephone lines and carry a wireless phone around the house or yard are not involved in the controversy both because of the much weaker signal strength and the different frequencies used. (John McCormick/19930719) DIGITAL CELLULAR STANDARD APPROVED BY TIA WASHINGTON, DC, U.S.A., 1993 JUL 19 (NB) -- San Diego, California- based Qualcomm, says that the Telecommunications Industry Association (TIA) has adopted its code division multiple access (CDMA) digital cellular technology as the basis for an interim standard known as IS-95. Competition between different proposed digital cellular standards have blocked industry moves to improve present cellular service quality and expand new services. The June 28 issue of Telephony said that the battle between supporters of the more advanced CDMA digital cellular technology and the older time division multiple access (TDMA), which has been accepted only by McCaw Cellular and SW Bell, was slowing acceptance of TDMA generally. Nynex is testing TDMA in New York and a wireless CDMA system at its headquarters while BellSouth is currently testing E-TDMA (extended- time division multiple access) from Hughes Network Systems. Specifically, the Qualcomm CDMA-CAI or Digital Cellular Common Air Interface (CAI) Specification was used by the TIA's TR45.5 engineering subcommittee as the basis upon which it built the IS- 95 standard. The adoption of a CDMA as an industry standard, three and a half years after it was demonstrated by Qualcomm, may allow both service suppliers and cellular phone manufacturers to move forward with development of the next generation of products and services, but this recent action does not block vendors and service providers from offering competing systems. (John McCormick/19930719/Press Contact: Thomas Crawford, Qualcomm Inc., 619-597-5715) AT&T HIKES LONG DISTANCE CHARGES; BLAMES 800 PORTABILITY WASHINGTON, DC, U.S.A., 1993 JUL 19 (NB) -- AT&T has released its new rate structure for long distance and it looks like business subscribers will be paying nearly four percent more for calls, while the average user will experience less than a one percent rise in costs. Long distance rates for home, business, and Calling Card users vary, but AT&T states that the rates for most business services will increase by 3.9 percent. This includes 800-service (toll free) as well as domestic and international long-distance charges. Newsbytes notes that there will also be some changes to certain installation and recurring charges. The company blames the increases on new equipment costs related to 800 number portability and inflation. Some day and evening direct-dialed consumer domestic long- distance call rates will increase by less than one percent while some evening rates will actually decrease. Rates on direct-dialed non-business international calls from the United States to 56 countries would, under the newly announced rates, increase an average of 3.8 percent, while charges on calls back to the United States from 27 countries using AT&T USADirect Service will increase an average of 15 percent. According to AT&T, base Calling Card and operated-assisted call rates will increase by an average of 3 percent. The rate changes announced today are only proposed changes until the FCC approves or denies the new tariff schedule but are expected to take effect on August 1st. (John McCormick/19930719/Press Contact: Mark Siegel, AT&T Consumer Services, 908-221-8413 or Mike Granieri, AT&T Business Communications Services, 908-221-7611) MERCURY SLASHES CALL CHARGES TO MEET BT LONDON, ENGLAND, 1993 JUL 19 (NB) -- After a year of steady erosion of its pricing advantage over British Telecom (BT), Mercury has responded with a series of price cuts on international telephone calls on its 2200 and 2300 services, all of which are designed to encourage subscribers to use the service more. While BT has concentrated on enhancing its frequent caller plans, which involve the use of cover charges, Mercury has opted for straight price cuts. Most interestingly of all, Mercury has introduced a long call discount scheme for calls to the US. From the beginning of August, any Mercury subscriber calling the US will find the cost of the call dropping by a hefty 25 percent for time spent after the first 15 minutes. According to Christine Holgate, Mercury's manager of consumer marketing, this means that, for a 20 minute call to the US at off-peak times, the cost is UKP 6- 69 -- a saving of 44.8 pence on the charges previously. This 25 percent long call discount on US calls is being introduced on a trial basis, with the trial running until the end of October this year. If the scheme is a success, then Mercury will consider implementing it on several international routes. The international call charge rates, meanwhile, have been cut by between 3.51 and 15.05 percent. Calls to many inland destinations, notably mobile phones and specialist pager services, have also been reduced. Some charges, such as to Vodafone's messaging and operator services, have been increased, although Mercury claims it is still cheaper than BT for such calls. Despite a recent shuffle in Mercury's tariff bands, to bring the company's rate chart into line with BT, Newsbytes notes it is becoming increasingly difficult to work out what savings, if any, a Mercury call has over BT. The good news is that Mercury has abandoned its mandatory requirement for subscribers to its Frequent Calling Program (FCP) to have a variable amount direct debit (VADD) payment system linked to their bank account. VADDs allow the billing company to debit the customer's bank account automatically, once the bill has been sent out. This change coincides with the August 1 price changes, Newsbytes notes, which also increase the FCP discounts on international calls. Where a standard call to the US costs 42.7 pence per minute during office hours, the same call on the FCP scheme costs 36.3 pence. Subscribing to the FCP scheme costs an extra UKP 20 a year, billed quarterly, over and above the UKP 10 a year that Mercury charges for its standard subscription. Mercury's 2200 and 2300 telephone charges are designed for users of BT's network. Like MCI and Sprint in the US, only long distance and international calls are routed through the Mercury network, with local calls continuing to b routed via the BT network. Subscribers to Mercury 2200 and 2300 continue to use BT as their "local loop" service provider, and pay rental on their BT line as usual -- Mercury merely uses the BT line to allow its subscribers to access its network indirectly. (Steve Gold/19930719/Press & Public Contact: Mercury Communications - Tel: 0500-500-914 [toll free in UK] otherwise 071-528-2000) DIGITAL MOBILE PHONES COME UNDER FIRE SYDNEY, AUSTRALIA, 1993 JUL 19 (NB) -- Digital mobile phones, specifically, the Groupe Speciale Mobile (GSM) variety, have come under fire from several quarters in recent months owing to the radio frequency (RF) interference they radiate. The problem has affected hearing aid users particularly badly, with many users reporting loud buzzing noises -- sometimes causing pain and discomfort -- when they are within a few metres of a GSM phone in use. Now an international auditory conference, held in Sydney last week, has confirmed what many in the mobile telecoms industry knew already, that GSM phones cause interference and, perhaps worse, it is not possible to stop this interference. Some sources had claimed that, with the latest hearing aids, all GSM interference could be removed. The problem lies, Newsbytes notes, with the pulsed RF nature of GSM. Digital data is superimposed on a 900 megahertz (MHz) signal and pulsed to an from the nearest GSM base station. It is these pulses that cause the interference. Such is the groundswell of public opinion in Australia about GSM -- fanned by frequent articles in the press -- that the organisers of the International Conference on Hearing Rehabilitation (ICHR) issued a statement outlining their findings. "Hearing aid users standing within a few metres of someone using the new phones will be subject to a loud buzzing noise in their hearing aids," said the statement. The statement is designed to reinforce the results of a report on GSM phone interference from the Australian Government. The report, issued last Wednesday, found that GSM phones can cause interference with hearing aids as far away as 10 metres, although Newsbytes' basic research on the subject has discovered that problems only tend to occur within two to three metres. The Australian Government report, which was conducted by the National Acoustics Laboratory, concluded that GSM phones, because of their more powerful nature than conventional analog phones, can start to cause interference as far away as 35 metres. Even the latest hearing aids, the report notes, are disabled by GSM phones operating within 1.5 metres of the hearing aid user. During a visit to Cellnet last week, one of the UK's two cellular phone operators, and which is currently testing its GSM network for launch later this year, company officials confirmed the hearing aid problems. Officials claimed that the problem could be solved using the latest hearing aid technology. Australian Government officials, backed by the National Acoustic Laboratory, remain ambivalent about this possible development. The root cause of the problem is the way in which hearing aids operate. Short of a radical change in the way that aids work, with attendant problems with compatible equipment, such as TVs and phones, the prospect of interference-free hearing aids looks very distant. (Steve Gold/19930719) INTERVOICE IN LARGE VOICE MAIL SYSTEM SALE WASHINGTON, DC, U.S.A., 1993 JUL 21 (NB) -- Dallas, Texas-based InterVoice has reported that it has received a $0.5 million-plus order for its 144-line RobotOperator System to be installed at a large public utility company. The InterVoice voice-mail system will be used to provide 24-hour answers to callers' usual questions about rates and billing problems. Intecom, a division of French Matra SA, a multimedia systems developer which has been a business partner of InterVoice for the past year, will buy the system from InterVoice, add its own value-added modifications, and make the installation. Intervoice has installed more than 3,000 voice response, electronic-mail, and fax systems in nearly 40 countries. Voice-response and fax-back systems customer help systems, usually operating in response to signals sent from touch-tone telephones, are gaining a larger market share as companies strive to improve productivity and improve customer service, while cutting costs by reducing staff. Muriel Siebert, the first woman to gain a seat on the New York Stock Exchange, told today's CNN Business Morning viewers that companies such as hers look at the potential for new employment taxes coming out of President Clinton's budget package and look for ways to automate as much as possible to insulate themselves from health-care and other employee-related costs. This sort of business concern, along with the difficulty in hiring qualified workers, should lead to even more interest in fax-back and voice-response systems. (John McCormick/19930721/Press Contact: Dorothy Botnick, InterVoice, 214-454-8771) MITEL NAMES NEW CHAIRMAN, REPORTS QUARTERLY PROFIT KANATA, ONTARIO, CANADA, 1993 JUL 21 (NB) -- Mitel Corp., has named a new chairman. Gordon S. Byrn, president of the company that last June bought a 51 percent interest in the telecommunications equipment maker, takes over from Anthony F. Griffiths. Byrn is president of Schroders and Partners Ltd., the Canadian affiliate of Schroder Ventures, and vice-chairman, North America and Far East for Schroder Ventures. Last June, Schroder bought a 51 percent stake in Mitel for about C$40 million from British Telecommunications PLC, which had been seeking to sell the shares for some time. At the time Byrn and one other Schroder representative joined the Mitel board. Griffiths, who has been Mitel's chairman since 1987 and was president and chief executive for two years before that, did not stand for re-election to the board, the company said. Griffiths served a second stint as president through most of 1992, after John Jarvis left that post, but was replaced as president by Dr. John Millard in January of this year. Mitel also reported a profit of C$3 million in its first quarter, ended June 25. The profit compares with a loss of C$7 million in the same period last year and is Mitel's third consecutive quarterly profit after a string of losses. Revenues were C$107.4 million, up 13 percent from C$95 million in the first quarter of last fiscal year. (Grant Buckler/19930721/Press Contact: Bonnie Perrigard, Mitel, 613-592-2122 ext. 1125) ****NORTHERN TELECOM EXPECTS 1993 LOSS, JOB CUTS MISSISSAUGA, ONTARIO, CANADA, 1993 JUL 21 (NB) -- Northern Telecom Ltd., has reported a second-quarter loss and admitted that it expects an annual loss in 1993. The company also said it will cut manufacturing capacity and let go about nine percent of its global work force, or 5,200 employees worldwide. The loss will be largely due to a provision for the cost-cutting measures, which Northern said will cost it about US$282 million. The company will take a special charge for that in 1993, and has also made a provision of US$158 million after tax for work on its software for central-office switching equipment. Third, Northern is taking a US$500 million write-down on goodwill related to STC PLC, the British telecom firm it bought in 1991. The company said its restructuring will mean consolidating manufacturing plants, including the closure of some operations, and cutting its 60,000 work force by about 5,200. The plan is expected to be complete by the end of 1994. Northern did not comment on the plan's possible impact on its 1994 results. The software provision is to cover the cost of completing modularization of Northern's central office switching architecture "to correct operating issues and enhance performance capabilities," said Jean Monty, president and chief executive, in a prepared statement. This is also due to be complete in 1994. Northern said it is writing down goodwill associated with STC because of continuing weakness in the European economy and concern that growth in European sales and earnings will be slower in the short term. Northern also said it has agreed to sell the STC Submarine Systems division to Alcatel Cable of France for UKP600 million. The unit had revenues of about UKP225 million in 1992, company officials said. In the second quarter of 1993, Northern lost US$1.03 billion on revenues of US$1.87 billion. This compares with net earnings of US$69.1 million on revenues of US$1.95 billion in the second quarter of last year. Northern had warned at the end of June that it expected the quarterly loss, its first in five years. The loss follows a disappointing though profitable first quarter, which ironically came on the heels of record revenues and earnings for Northern in 1992. In the year ended December 31, Northern's revenues were US$8.41 billion and net earnings increased eight percent to US$536 million. Northern "has provided us with quite a few surprises in the last five consecutive quarters," said Frederick Larkin, an investment analyst who follows the company for Warburg Inc., in Toronto. He said institutional investors are becoming wary of Northern's stock. However, Larkin added that while the immediate news is bad, he believes Northern is taking the right steps. The cost-cutting measures will keep the company competitive, he said. Just how soon Northern's fortunes rebound will depend largely on its ability to boost sales of central office gear. Larkin said he is not yet ready to speculate on Northern's financial prospects in 1994. (Grant Buckler/19930721/Press Contact: Tom Tropea, Northern Telecom, 416-566-3178; Gary Brandt, Northern Telecom, 416-566-3098) UK - BT CUTS PRICING ON INTERNATIONAL ISDN CALLS LONDON, ENGLAND, 1993 JUL 21 (NB) -- British Telecommunications (BT) has announced it is cutting the cost of international Integrated Services Digital Network (ISDN) calls from the UK. The price cuts take effect from September 29 onwards. One of the criticisms of BT's ISDN service to date has been that international calls are charged at higher rates than ordinary phone calls. This is in contrast to inland calls, which are billed at the same rate, regardless of whether they are voice or ISDN data. BT has always claimed that foreign telecoms companies charge it for access to their ISDN services, hence the disparity in charging system. From September onwards, however, many international ISDN call charges fall. BT claims that this is due to foreign telecoms companies cutting their charges to BT, so it is passing these savings along. A spokesman for BT cited the example of a company using three ISDN-2 connections (six 64,000 bits-per-second channels) for high-quality videoconferencing links between London and New York. Under the new tariff arrangements, they will pay UKP735 for two hours of videoconferencing, rather than UKP1,008 under the old charging system. This is a 27 percent call cost reduction. In a more practical example, BT claims that the price of transmitting 100 pages by fax over an ISDN-2 links to France, which takes five minutes, will fall from UKP4.25 to UKP3.80, a 10.5 percent reduction. BT currently has 20 ISDN international routes to 18 different countries. They are: Australia, Belgium, Canada, Denmark, Finland, France, Germany, Hong Kong, Italy, Japan, (for KDD & ITJ), the Netherlands, New Zealand, Norway, Singapore, Sweden, Switzerland, Spain, and the US (for AT&T & MCI). (Steve Gold/19930721) UK - BT ENHANCES TELEMEDICINE TECHNOLOGY LONDON, ENGLAND, 1993 JUL 21 (NB) -- British Telecommunications (BT) has revealed that it is commercializing several new methods of transmitting medical data and expertise over the public switched telephone network (PSTN) and Integrated Services Digital Network (ISDN) services. Known as telemedicine, the technology builds on the success that some hospitals have had with using remote-control heart monitoring equipment installed in the homes of patients. If a problem occurs, the heart monitoring machine can be used in the home and data transmitted over the phone line using a modem. BT officials claim that the application of similar technology can be made in many more areas of medicine, as well as in other unrelated areas, such as completing remote diagnostics on computers at a distance. "In fact our primary interest is not to sell hardware, that is to some extent a separate issue," explained Mike Matthews, section manager of the BT's advanced media unit at the company's research and development headquarters in Martlesham, Norfolk. "Our primary interest is to act as a catalyst in making people think about how they can use advanced networks." At a conference held in London recently, Matthews and other BT seniors demonstrated several applications of the technology, including Camnet (short for "camera over network") and an endoscope imaging system being developed with the science laboratories at Sheffield University. The endoscope system allows images from the inside of a human digestive tract to be transmitted over a phone- modem or ISDN link for viewing by doctors at major medical centers. Camnet involves the use of a camera attached to the head of a medic at a remote site. Images from the camera are transmitted over the phone-modem or ISDN link for interpretation at a medical center. Like the endoscope project, Camnet allows staff at hospitals to spend less time travelling to patients and more time actually treating them. (Steve Gold/19930721) SPECTRUM INTROS CELLULAR FAX/MODEM FOR NEC PHONES MANHASSET, NEW YORK, U.S.A., 1993 JUL 21 (NB) -- Spectrum Information Technologies has introduced a new version of the company's AXCELL fax/modem link for NEC portable handheld cellular telephones. NEC will market the product as the INT 4000 Data Interface and Spectrum will also sell it under the trade name AXCELL. The AXCELL hardware is compatible with NEC's current full line of portable handheld cellular phones, including the new P100 series and the P400/600 and P200/300 versions of portable cellular phones. AT&T, Ericsson GE, Fujitsu Network Transmission Systems, and Audiovox all sell private label versions of Spectrum's AXCELL. The new data interface will ship this fall and should have a list price of around $400. With the ever increasing use of cellular telephone technology it is only natural that portable computer users will want to link their fax and data capabilities to their cellular telephones so they have full communications capabilities while on the road. When outside the ability to link through a cellular phone means that there is no need to carry a special, and not very dependable, acoustic coupler system that allows linking to handsets in phone booths. Business travelers sitting in hotel rooms may find that it is actually less expensive to use the added-cost cellular connection rather than pay the service charges some hotels levy on people who place calls from their room phone. (John McCormick/19930721/Press Contact: Don Kessler, Spectrum Information Technologies, 516/627-8992 or Kathy L. Bachand, investor relations, 800/233-2119, ext. 308)