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 (Date of earliest event reported): July 1, 1995
NYNEX CORPORATION
A Delaware Commission File I.R.S. Employer Identification
Corporation Number 1-8608 No. 13-3180909
1095 Avenue of the Americas, New York, New York 10036
Telephone Number (212) 395-2121
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Form 8-K NYNEX CORPORATION
July 1, 1995
Item 5. Other Events
NYNEX/Bell Atlantic Cellular Venture
Effective July 1, 1995, NYNEX Corporation ("NYNEX") and
Bell Atlantic Corporation completed the combination of
their domestic cellular properties in a joint venture
partnership.
New York Incentive Regulation Plan
On July 3, 1995, New York Telephone Company ("New York
Telephone") filed with the New York State Public
Service Commission ("NYSPSC") its acceptance of a
proposed Regulatory Plan (the "Plan"), as modified by
the NYSPSC in an order dated June 16, 1995, that would
change the manner in which New York Telephone is
regulated by the NYSPSC over the next five to seven
years. The Plan is a performance-based plan that,
subject to final approval by the NYSPSC, will replace
rate of return regulation with incentives to invest in
new technologies and improve service. There will be no
restriction on New York Telephone's earnings. The Plan
will cap, at current rates, the prices for such "basic"
services as residence and business exchange access,
residence and business local calling and LifeLine
service, and will reduce average prices of toll and
intraLATA carrier access services. During its term,
the Plan will allow certain prices to be adjusted to
take into account an inflation index in excess of four
percent annually or costs associated with government
mandates and other defined "exogenous" events.
The NYSPSC's modifications to the Plan include:
(a) more stringent service quality standards and rebate
provisions; (b) greater reductions in New York
Telephone's average prices for intraLATA carrier access
services during the term of the Plan; (c) an
accelerated schedule for the provision of intraLATA
presubscription; (d) an opportunity for New York
Telephone to earn the remaining $26.5 million of the
$31 million in revenues "set aside" in 1994 and based
on a service improvement plan; and (e) a change to the
proposed effective date of the Plan from January 1,
1995 to the actual effective date, following approval
by the NYSPSC.
It is estimated that approximately $77 million in
revenues already "set aside" in 1995, in addition to
$122 million of the 1994 "set aside," will be released
to New York Telephone in exchange for the various
commitments New York Telephone accepts under the Plan.
After funding those commitments as well as New York
Telephone's 1994 service penalty obligation, it is
estimated that at least $26 million in such released
revenues will contribute to earnings in 1995. If the
Plan as modified by the NYSPSC is approved by the
NYSPSC, and depending on whether the Plan remains in
effect for five or seven years, New York Telephone's
prices will have been decreased by an amount that would
produce an aggregate reduction of $1.1 billion or
$2.0 billion, respectively, in revenues based
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Form 8-K NYNEX CORPORATION
July 1, 1995
Item 5. Other Events (Continued)
on current volumes of business. The NYSPSC's order
permits interested parties a limited opportunity for
comment on the modifications and provides that, if no
further changes are required by such comments, the Plan
as modified will be approved. It is anticipated that
the NYSPSC will schedule the matter for final
consideration at its July 28, 1995 public meeting.
NYNEX Clarifies Discussion of Growth Expectations
NYNEX issued the following statement on July 6, 1995:
Having reviewed an analyst's recitation of answers
given to questions asked during a conference call with
analysts held yesterday, NYNEX clarified information it
provided on growth. A 3 to 4 percent estimate of
telecommunications sector revenue growth given during the
call was intended to be a reference to long-term revenue
targets for this sector.
NYNEX has a policy not to issue specific financial
projections.
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Form 8-K NYNEX CORPORATION
July 1, 1995
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.
NYNEX CORPORATION
By Morrison DeS. Webb
Morrison DeS. Webb
Executive Vice President,
General Counsel and Secretary
July 10, 1995
