AT&T Prepares to Enter $100 Billion Market with Phone Services over Cable-TV Networks

Strategic Insights -

As the US long-distance leader, AT&T is preparing to break into the vast local phone service market by offering phone services over cable-television networks. The company has set up demonstrations in several locations and is conducting a trial in Fremont, California, to showcase its ability to deliver phone services over cable wires. AT&T aims to connect its 70 million residential customers directly and is currently awaiting regulatory approval to complete its $46.6 billion acquisition of Tele-Communications Inc., the No. 2 cable company in the US.

Key Takeaways:

  • AT&T is set to enter the $100 billion local phone service market in the US by offering phone services over cable-television networks.
  • The company has established demonstration rooms in Basking Ridge, NJ, and Washington, showcasing its ability to deliver phone services over cable wires.
  • A trial is currently underway in Freemont, California, with AT&T and TCI employees participating.
  • AT&T aims to connect its 70 million residential customers directly via cable wires.
  • The demonstration site in Basking Ridge includes several personal computers, telephones, and a television, highlighting the integration of cable and phone services.
  • Once installed, the majority of customers do not notice a difference between the AT&T system and traditional cable-television and phone services.
  • AT&T's $46.6 billion acquisition of Tele-Communications Inc. is anticipated to be completed in mid-1999.

Statistics:

  • $100 billion: the estimated size of the local phone service market in the US.
  • 70 million: the number of residential customers that AT&T aims to connect directly via cable wires.
  • $46.6 billion: the value of AT&T's acquisition of Tele-Communications Inc.
  • 1999: the anticipated year for the completion of AT&T's acquisition.

Sources:

  • "AT&T Prepares to Enter $100 Billion Market with Phone Services over Cable-TV Networks" - exact wording and tone as in the original article.
  • No additional sources mentioned in the original article.