AT&T and Comcast Complete Cable System Transfer

Strategic Insights -

In a strategic move to better cluster their territories, AT&T and Comcast have completed the transfer of cable systems serving nearly 1.5 million customers. This transaction, first announced in May 1999, has resulted in Comcast assuming ownership of approximately 773,000 customers in six areas, while AT&T Broadband has taken over select Comcast cable systems serving about 700,000 customers in six other areas.

Key Takeaways:

  • The cable system transfer involves the exchange of territories to better cluster the areas served by each company.
  • The transaction affects nearly 1.5 million customers, with Comcast assuming ownership of approximately 773,000 customers and AT&T Broadband taking over 700,000 customers.
  • The areas affected by the transaction include Avalon, N.J.; Detroit; Naples and Fort Myers, Fla.; Pottsville, Penn.; Royal Oak, Mich; and Washington, D.C. for Comcast, and Atlanta; Broward County, Fla.; Chicago; Longmont, Colo.; Sacramento, Calif.; and Westmoreland, Penn. for AT&T Broadband.
  • AT&T Broadband, a business unit of AT&T, is the nation's largest broadband service company, providing television entertainment services to over 16 million customers.
  • Comcast Cable, a division of Comcast Corporation, is the third largest cable company in the United States, serving over 8.2 million customers across six geographic regions.

Statistics:

  • Nearly 1.5 million customers are affected by the cable system transfer.
  • Comcast has assumed ownership of approximately 773,000 customers, while AT&T Broadband has taken over 700,000 customers.
  • The transaction involves the exchange of territories in six areas for Comcast and six other areas for AT&T Broadband.
  • AT&T Broadband provides television entertainment services to over 16 million customers, making it the nation's largest broadband service company.
  • Comcast Cable serves over 8.2 million customers, making it the third largest cable company in the United States.

Sources:

  • Business Wire, January 2, 2001.
  • AT&T press release, May 1999.