SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
SECURITIES EXCHANGE ACT OF 1934
Date of Report - November 15, 1996
(Date of earliest event reported)
GTE CORPORATION
(Exact name of registrant as specified in its charter)
NEW YORK 1-2755 13-1678633
(State or other (Commission (I.R.S. Employer
jurisdiction of File Number) Identification
No.)
incorporation)
ONE STAMFORD FORUM
STAMFORD, CONNECTICUT 06904
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (203) 965-2000
GTE CORPORATION
FORM 8-K
ITEM OF INFORMATION
Item 5. Other Events
In connection with the "safe harbor" provisions of the Private
Securities Litigation Reform Act of 1995, GTE Corporation ("GTE" or the
"Company") is hereby filing cautionary statements identifying important
factors that could cause the Company's actual results to differ materially
from those projected in forward-looking statements of the Company made by or
on behalf of the Company.
Forward-Looking Statements
GTE has projected earnings-per-share growth of not less than 10% for the
foreseeable future. GTE projects that the Company's share of the total
in-franchise market of telecommunications service revenues will increase over
time. Consolidated revenue growth in 1997 will be in the range of 6% to 8%.
Revenues from GTE's domestic telephone operations are expected to grow by 5%
to 6%, with half of that growth driven by core services, with the remainder of
the growth coming from enhanced services and new initiatives like long
distance, Internet and video services. In the area of long distance, GTE
expects to almost double its customer base in 1997 and increase its revenues
about seven times. Operating margins for domestic telephone operations are
expected to maintain levels consistent with 1996.
GTE's domestic cellular growth is expected to remain consistent with the
industry, with as many new net additions next year as in 1996. However,
revenue per customer is expected to continue a 7% to 8% downward trend as more
residential customers and new competitors enter the market.
In addition, GTE anticipates that the current trend of being an industry
leader in EBITDA growth (earnings before interest, taxes and depreciation and
amortization) will continue. GTE affirms that the amount of net income
contributed by international operations in 1995 will double by the year 2000.
Risk Factors
GTE's forward-looking statements are based upon a series of projections
and estimates regarding the economies within our markets, the
telecommunications industry, the effects of federal, state and local
regulations on the industry in general and on GTE's operations, as well as key
performance indicators which impact the Company directly. These projections
and estimates regarding the economy and the telecommunications industry relate
to the demand for and pricing of services, the effects of competition, the
impact of universal service, the success of new products, services and new
businesses such as long distance.
With regard to the effects of regulation, GTE has assumed fair and
reasonable resolutions to any pending and potential federal, state and local
regulatory initiatives and proceedings, including arbitration proceedings
before various state regulatory commissions. GTE has also assumed the
successful outcome of the proceedings filed with the Court of Appeals for the
Eighth Circuit challenging the FCC's published Report and Order, dated August
8, 1996, regarding the terms of interconnection, unbundled network elements
and resale rates.
In developing its forward-looking statements, GTE has made certain
assumptions relating to key performance indicators that have a direct bearing
on GTE's ability to attain these projections. These assumptions include
continued annual growth in the following areas: telephone access lines and
minutes of use; new and nontraditional revenues; cellular volume; and customer
growth. They also assume productivity improvements and the absence of
disruption to GTE's markets.
If future events and actual performance differ from that assumed for the
risk factors noted above, GTE's actual results could vary significantly from
the performance projected in the forward-looking statements.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of
1934, the registrant has duly caused this report to be signed on its
behalf by the undersigned thereunto duly authorized.
GTE CORPORATION
(Registrant)
MARIANNE DROST
(Marianne Drost)
Secretary
Date: November 15, 1996
