Sign in Subscribe
Telephone services

Cable TV Consolidation in the Twin Cities: Changes in the Industry

Strategic Insights

— 1 min read

Cable TV and telecommunications companies in the Twin Cities are undergoing sweeping changes due to industry consolidation. One such change is the planned acquisition of cable TV giant TCI by AT&T, which will have a direct impact on multiple Minnesota communities. Meanwhile, telephone company U S West has split into two separate companies, U S West (local telephone service) and MediaOne Group (cable TV), both based in Colorado.

Key Takeaways:

  • The MediaOne Group cable TV operations in St. Paul are part of the third-largest cable TV firm in the nation, behind TCI and Time Warner, serving over 60% of the Twin Cities cable TV market.
  • MediaOne has cable TV operations in about 10 metro areas, with a total of 5.1 million cable TV customers in 17 states.
  • The TCI acquisition is likely to directly affect several Minnesota communities where TCI owns cable TV systems, including Austin, Albert Lea, Winona, Rochester, Faribault, Willmar, St. Cloud, Alexandria, International Falls, Ely, Aitken, Breckenridge, East Grand Forks, Long Prairie, Avon, and Park Rapids.
  • Paragon Cable in Minneapolis is owned by Time Warner Cable of Stamford, Conn. and is part of the national cable TV competition.
  • MediaOne plans to roll out high-speed Internet access to about 15% of its Twin Cities audience this fall, upgrading its cable TV systems to handle high-speed Internet access and, in the longer run, telephone service.
  • In the longer run, AT&T's apparent intent to pursue telephone service via cable TV could put pressure on other cable TV providers to speed up their efforts in that area.

Statistics:

  • MediaOne has a total of 5.1 million cable TV customers in 17 states.
  • The MediaOne operation in St. Paul serves over 60% of the Twin Cities cable TV market.
  • MediaOne plans to roll out high-speed Internet access to about 15% of its Twin Cities audience this fall.
  • MediaOne has cable TV operations in about 10 metro areas.

Sources:

  • "AT&T Planning to Buy TCI, Aiming for Cable TV." St. Paul Pioneer Press, citing Rob Stoddard, a spokesman for Englewood, Colo.-based MediaOne.
  • "Telecommunications company U S West to split." Dallas Morning News, citing U S West spokesmen.
  • "Cable television." Minnesota Public Radio, citing Mike Martin, executive director of the Minnesota Cable Communications Association in St. Paul.
  • "Time Warner Cable." Time Warner Cable, cited in Rob Stoddard's statement.

Read more