With cable deal, AT&T makes move to regain empire

Article Abstract:

AT and T has formally announced the deal to acquire Tele-Communications Inc. for $31.8 billion in stock. AT and T will also assume TCI's $11 billion debt and pay $5.5 billion in cash to repurchase shares AT and T issued to TCI from a previous transaction. The two companies have previously expressed the wish to sell service packages, and will begin to jointly market each other's services before the deal closes. They also plan to sell digital phone and data service over the cable system by the end of next year. Although the merger, a result of the 1996 decision to deregulate the telecommunications industry, is expected to make prices more competitive, investors are wary of the merger due to its complexity and its vagueness on many points.

Comment:

TCI to be acquired by AT&T for $31.8 billion in stock

Asset sales & divestitures, Company Planning/Goals, AT&T Broadband and Internet Services Inc., Article

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Cable TV lacks competition, F.C.C. notes; the 'loser' is the public, because of higher rates, a report says

Article Abstract:

Cable TV subscribers are paying higher rates because of the information revolution, according to an FCC report. The results prompted FCC Chmn William E. Kennard to announce that the proposed March 1999 deregulation on cable rates, a portion of the Telecommunications Act of 1996, appeared to be premature. Cable TV rates surged by 8.5% in 1997, compared to the 1.7% rise in overall consumer prices, the report said. Standard service now averages $28.83 a month. A near absence of cable operator competition contributed to the rate increase, according to the FCC. Cable TV accounted for 87.2%, or 64.2 million, of the 73.6 million US households that subscribed to an advanced TV service. Satellite systems served the vast majority of the remainder.

Cable and other pay TV services, Laws, regulations and rules, Prices and rates, Telecommunications regulations, United States. Federal Communications Commission, Internet services, Economic policy, Government communications regulation, Cable television/data services, Kennard, William E.

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AT&T profit surges 42% on cost cuts; but Wall St. is wary over huge cable deal

Article Abstract:

AT & T Corp.'s unsolicited bid for Mediaone Corp. has quelled glee over high first quarter earnings results. Chief C. Michael Armstrong's aggressive cost-cutting campaign and increasing sales helped provoke profits but investors are nervous. First, Comcast has already put in a bid for Mediaone, which the company has accepted. Then, the Federal Communications Commission will probably weigh in against AT & T's plan for an oligopoly. Compllicating matters are the many loopholes in cable television regulation.

Sales, profits & dividends, Communications, Broadcasting and Telecommunications, Telecommunications industry, MediaOne Group Inc., Comcast Corp.

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