Bell Atlantic and Nynex are planning to combine cellular phone business

Bell Atlantic and Nynex plan to merge their separate cellular phone service operations into a single entity, thus creating a cellular giant to rival industry leader McCaw Cellular Communications. Officials for the regional Bell operating companies refused to disclose the terms of the deal, but inside sources report that Bell Atlantic is to control 62.35% of the merged company, while Nynex will hold 37.65%. The deal is still subject to review by the Department of Justice, but if it succeeds the merged company would have a subscriber base of approximately 1.8 million and projected revenues of $1.2 billion. The merged company would also become a strong contender in the two Bells Northeast and mid-Atlantic markets, markets that have historically been among the most profitable for cellular carriers in the US. The proposed deal highlights a consolidation trend among local, long-distance and wireless carriers.