AT&T Network Systems, the telecommunications company owned by AT&T Co and Philips NV is AT&T’s chosen vehicle for building a presence in the European telecommunications market, but Philips, which dumped its own telephone exchange and transmission equipment businesses into the joint venture has turned out to be something of a borken reed from AT&T’s point of view, and wants out altogether. It cut its holding to just 15% from 40% at the beginning of the year, and now wants out altogether to concentrate on consumer and professional electronics, and AT&T will take on Philips share until another investor is found. AT&T needs partners to penetrate national European markets, and as well as the negotiations with Italtel SpA, it is also talking to its semiconductor partner, Telefonica de Espana SA. AT&T Network Systems’ Spanish outlet is called APT Espana SA, and already has a local partner – AT&T Network Systems has 51% and the remaining 49% is controlled by Amper SA. It develops and manufactures high-end telecommunications equipment for Telefonica, and has recently started building a factory in Madrid’s Tres Cantos, with total investment set at $43m, in the hope of reaching a $215m turnover by the time the building is finished in 1992. APT Espana has several agreements with Telefonica to supply a digital intelligent network before the Barcelona Olympic Games in 1992, and APT is also building four digital exchanges with 35,000 phone lines capacity to be installed in Barcelona. where modernisation proceeds apace for the Games.
