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GM, Bell Atlantic Reportedly Discussing Cell-Phone Venture

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Bloomberg News

General Motors Corp. is in talks with Bell Atlantic Corp. to put cell phones in millions of new cars and trucks, part of the No. 1 auto maker’s strategy to link drivers to the Internet and generate revenue after a sale, people familiar with the plan said. General Motors said it will install as many as 1 million phones in vehicles this year but wouldn’t say which telecommunications company it was talking to. An agreement with the No. 2 U.S. local phone company may come as early as next week, the people said. The companies declined to comment. An alliance would advance GM’s effort to offer online entertainment and personal services to motorists via its OnStar system, which uses satellites to track cars and cell technology for communication. America Online Inc., the biggest online service, this week agreed to help provide content. Shares in Detroit-based GM, which rose $3.44 to close at $76.38 in New York Stock Exchange trading, have gained 11% in the last 52 weeks. Shares of New York-based Bell Atlantic fell $1.95 to $56, also on the NYSE.

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