Ameritech Corp

It's a battle that's likely to change the face of television, pitting giant phone companies against cable TV firms and satellite operators in an epic struggle for the electronic allegiance of the American consumer. And the heaviest hitters in Hollywood are now choosing up sides. On Tuesday, Walt Disney Co. and three Baby Bell telephone companies announced plans to invest $500 million over the next five years in a new type of television programming venture.

Ameritech Gets Cable OK for 6 Cities: Federal regulators cleared the way for the regional telephone company to build cable television-like systems in six Midwestern cities. The systems, which will be separate from Ameritech's phone networks, will transmit TV programs and other services to a potential audience of 1.3 million. The FCC's action breaks through a backlog of several dozen requests by telephone companies to provide video services.

Ultralink Inc., a health care network manager, has been selected by Ameritech, a telecommunications company in the Midwest, as the planning and network manager for Ameritech's health benefits programs. Ultralink, in conjunction with the Kennedy Consulting Group in Chicago, will develop a network of health maintenance organizations to serve Ameritech's employees in five states. Ameritech has 68,000 employees and 50,000 retirees.

Walt Disney Co., the entertainment firm famous for its isolationist approach to the digital revolution, said Monday that it plans to team with three big regional phone companies to deliver new video services to the home. Disney and its partners, Ameritech Corp., BellSouth Corp. and Southwestern Bell Corp., said they hope to offer such interactive services as movies on demand, home shopping and a "navigator" that consumers would use to sort through the plethora of programming.