AT&T and TCI Defend Merger as AOL Lobbies for Unbundling and Municipal Regulators Get Involved

Strategic Insights -

As the proposed merger between US cable MSO Tele-Communications Inc (TCI) and telecom operator AT&T faces scrutiny from the Federal Communications Commission (FCC), concerns are mounting about equal and open access to cable's high-speed data pipe. AT&T and TCI are resisting calls to "unbundling" of TCI's cable modem platform @Home Network, which would require the sale of its content and delivery platform separately. America Online (AOL) is leading the charge, lobbying for access to @Home's platform so that its customers can access broadband services without having to pay for @Home's content service.

Key Takeaways:

  • AT&T and TCI are defending their proposed merger against FCC criticism, with a focus on ensuring equal and open access to cable's high-speed data pipe.
  • America Online is lobbying for "unbundling" of TCI's @Home Network as a condition of the AT&T/TCI merger, to ensure that its customers can access broadband services without paying for @Home's content service.
  • Municipal regulators in Oregon intend to force companies to open @Home to ISPs even before an FCC ruling is issued, expected early 1999.
  • The Mount Hood Cable Regulatory Commission has advised the city of Portland and Multnomah County to make ISP access a condition for transferring TCI franchises to AT&T.
  • The commission has proposed transfer ordinances that would grant local ISPs "non-discriminatory" access to the @Home platform and require cable operators to set aside up to 15% of channel space for unaffiliated programmers willing to pay for access.

Statistics:

  • The proposed merger between AT&T and TCI was filed with the FCC last month.
  • AOL has been lobbying AT&T and TCI for some time over access to @Home's platform.
  • The Mount Hood Cable Regulatory Commission will force companies to open @Home to ISPs before an FCC ruling is issued, expected early 1999.
  • Up to 15% of channel space on the @Home platform will be set aside for unaffiliated programmers willing to pay for access under the proposed transfer ordinances.

Sources:

  • www.att.com (AT&T)
  • www.tci.com (Tele-Communications Inc, USA; +1/303 267 5500)
  • "Municipal regulators Get Involved in AT&T/TCI Merger" (unspecified date)
  • (Note: No specific date for the second source is mentioned, so it will not be added to the output)