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Firms May Announce National Data Network

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International Business Machines, MCI Communications and a University of Michigan unit are expected to announce Monday the formation of a company to operate a high-speed, nationwide data transferring network that could ultimately serve businesses and homes.

The three already operate a National Science Foundation-owned nationwide data network. The nearly $60-million, 3-year-old network links close to 2,000 universities and research laboratories along more than 13,000 miles of fiber-optic telephone lines capable of carrying high-speed data transmissions. Terms of the funding for the network, which essentially operates as a telephone line for computerized data transmissions, now prevent its use by private business.

However, it is widely believed that a major objective of the new arrangement will be to increase network subscribers by allowing businesses and residences to use the system.

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