Pacific Telesis and 2 other Bells struggle over future of TV venture

Article Abstract:

The Pacific Telesis Group tries to convince its partners Nynex and Bell Atlantic to continue their investments in the Tele-TV digital television venture, but the other two companies want to withdraw. The original agreement between the three companies called for them to finance each others' wireless cable services, but both Nynex and Bell Atlantic have decided not to offer wireless services and object to paying for Pacific Telesis to launch its service. Nynex and Bell Atlantic contend that their own pending merger and SBC Communications' acquisition of Pacific Telesis make the previous agreement void. Pacific Telesis argues that the acquisitions are not yet complete and that it paid its portion of the costs for testing wireless service in Bell Atlantic's region. Pacific Telesis needs Tele-TV to provide the billing system and the set-top converter boxes for the digital cable service. Some observers believe Nynex and Bell Atlantic will offer a lump sum in settlement.

Author: Landler, Mark
COMMUNICATION, Communications, Broadcasting and Telecommunications, Cable Television Systems, Services, Telecommunications services industry, Telecommunications industry, Cable television broadcasting industry, Bell Atlantic Corp., BEL, Company services, NYNEX Corp., Pacific Telesis Group, PAC, NYN

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A changing cast of media players; software-cable TV deal shows phone companies' fading role

Article Abstract:

Microsoft is purchasing 11.5% of Comcast, the fourth-largest cable company in the US, for $1 billion. The $1 billion dollars will allow Comcast to rebuild its coaxial network at a faster rate, according to Brian Roberts, Comcast's president. The coaxial network will enable Comcast to provide high-speed Internet access as well as hundreds of additional television channels. Mr. Gates is interested in using the Internet as a distribution channel for Microsoft's entertainment and information products, as well as its software products. Microsoft will be purchasing the first half of 11.5% in class A common stocks, for $20.29 a share and the second half in a new class of convertible preferred stock.

Author: Landler, Mark
Cable TV Networks, Computer software industry, Software industry, Microsoft Corp., Comcast Corp., CMCSA, MSFT, Cable networks (Television)

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Subjects list: Internet services, Company investment, Investments, Cable television, Cable television/data services
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