Pacific Telesis Group announced Thursday that it will spend $16 billion over the next seven years to build a new electronic information network to carry voice, data and video services in its California market.
The company, which provides phone service to states on the U.S. Pacific Coast, also said it has signed a multi-billion dollar, seven-year pact with American Telephone and Telegraph Co. under which AT&T will supply equipment for the project.
Pacific Telesis, known as Pactel, said the initial construction will begin next year, with the initial focus on the San Francisco Bay area, Los Angeles, Orange County and San Diego.
PacTel said the new network will provide its telephone customers with an alternative to current cable television companies.
It said the network will offer up-to-date telephone service by 1995, but, subject to regulatory approvals, will offer a “wide variety of video programming” before that time.
The network will be capable of offering “fully interactive digital and telephone services by the 1995-1996 time frame,” it said.
PacTel said the new network will employ fiber optic cables.
AT&T is supplying the ATM technology.
