AT& T's big chance to open the door

Article Abstract:

In an interview, Salvatore Muoio, a media and communications analyst who heads SM Investors L.P., discusses how AT&T Corp.'s $58 billion cash and stock offer for Mediaone Group suggests that cable, rather than telephone, will become the preferred way to deliver information, due to its broad-band capacity. According to Muoio, AT&T absolutely must acquire Mediaone in order to survive, as the long-distance telephone market opens to competition this year. AT&T is bound to lose market share to new competition, and thus must in turn offer local-phone service, which it can't do without the wire of either a local or cable company. Regulators won't permit AT&T to buy a local phone company, so buying a cable company is imperative. Muoio doubts that Microsoft will join with Comcast or America Online to make a higher bid for Mediaone. Even if Comcast makes a bid, Muoio feels that AT&T would make a higher counterbid, in order to be sure it acquires Mediaone, so that it can enter the local phone service market.

Asset sales & divestitures, Acquisitions & mergers, Cable Television Systems, Cable Networks, Telephone Communications, Long Distance Telephone Svc, Cable and other pay TV services, Usage, Mergers, acquisitions and divestments, Internet services, Cable television broadcasting industry, Cable television, Telephone services, Long distance telephone services, Interview, MediaOne, Cable television/data services, Long-distance telephone service, Broadband transmission, Broadband, Local telephone service, Muoio, Salvatore

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Time Warner joins forces with AT&T; local telephone service using cable TV lines

Article Abstract:

In a move that essentially could allow AT&T to provide local phone service to 40% of the country's consumers and hold a dominant role in cable television service that includes Internet access, the long distance giant is forging an alliance with Time Warner. AT&T already provides $40 billion in long distance phone service annually in the U.S. Local regulatory approvals may be required, although federal approvals probably will not be.

Comment:

Alliance with AT&T opens new vistas for cable company

Alliances, partnerships, Time Warner Inc., Contracts, Abstract, TWX, Cable telephony

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