ROCHESTER, N.Y. (AP) -- AT&T Corp. and Sprint Corp. are considering using Kodak technology to transmit high-quality images digitally over telephone lines, The Wall Street Journal reported Wednesday.

Eastman Kodak Co. and Sprint are close to finalizing a licensing agreement that would let the long-distance carrier use Kodak technology to store and retrieve photographs, medical X-Rays and other images on computers, the newspaper said, citing unnamed sources.

Likely users of the technology include architects, advertisers and doctors.

Kodak also is discussing with AT&T a broader alliance that could involve joint development of networks for storing and managing images. The two firms are also may work together to develop new imaging technologies, the Journal said.

Kodak officials could not immediately be reached for comment on the report.

Partnerships with telecommunications companies would fit with Kodak's push to expand its core photography business through digital imaging.

Kodak could announce the Sprint partnership as early as next week, when it plans to outline its digital strategy for investors and analysts in San Francisco.

AP-WS-03-22-95 1155EST

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