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CABLE EXECUTIVES GUNG-HO ON DIGITAL, DATA, VoD BUT NOT STREAMING
June 12, 2001 |Miscellaneous

CHICAGO -- Despite nation’s economic slowdown and depressed media ad spending, cable operators painted bright picture of industry’s future Mon., boasting about success of their digital video and high-speed data services. Speaking at opening session of NCTA’s annual convention here, heads of 3 of 4 biggest MSOs said they would continue to roll out digital, data and even newer services such as video-on-demand (VoD) and home networking briskly over next couple of years because of unquenched consumer demand. They also said slowing economy had had little impact on their core video products so far. “It [the economy] really hasn’t held us back,” Charter Communications Pres. Jerry Kent said.

HUGHES BACKS OUT OF NEWS CORP.-DIRECTV DEAL
April 2, 2001 by Bruce Branch|Miscellaneous

Hughes Electronics decided not to sell DirecTV to News Corp. because companies weren’t able to agree on price, CEO Michael Smith said. Smith made first public comments on talks at Morgan Stanley Analysts Conference in N.Y. since rumors begin to surface about possible sale to Rupert Murdoch and News Corp. last month in transaction that would have created $75 billion global satellite empire. It was widely speculated by industry insiders that Murdoch was offering stock while partners Microsoft and Liberty Media would ante up $5 billion and $1 billion in cash, respectively. New company reportedly would have been owned 65% by Hughes shareholders and 35% by News Corp., which would manage new company. “It doesn’t make any sense to us and we won’t do that deal,” Smith said. “It’s as simple as that. There’s not enough value in the deal. End of story.”

AT&T SHEDS MORE CABLE SYSTEMS, WEIGHS SELLING TWE STAKE
March 1, 2001 by Alan Breznick|Miscellaneous

Disposing of more assets, AT&T agreed to sell cable systems in several more states to Charter Communications and considered offering its 25.5% stake in Time Warner Entertainment (TWE) to public investors. AT&T, which has already shaved its debt load to $46 billion from high of $65 billion last year, aims to raise as much as $12 billion through 2 separate actions. Analysts still expect company to take further steps to pare down its debt, including spinoff of its Liberty Media programming unit and sales of its stakes in Comcast, Cablevision Systems and European wireless operations that it inherited from MediaOne.

ARMSTRONG WARNS AT&T MAY PULL OUT OF LOCAL PHONE MARKETS
February 8, 2001 by Edie Herman and Alan Breznick|Miscellaneous

Unless policymakers crack down on Bell companies, AT&T may have to leave markets where it now offers local phone service and not enter new ones, AT&T Chmn. Michael Armstrong said Wed. in speech at National Press Club. On eve of Telecom Act’s 5th anniversary, Armstrong said AT&T, Sprint and other competitors have had so much difficulty breaking into local markets that it might not make sense to keep trying. Biggest problem is inability to lease unbundled network elements (UNEs) at reasonable prices, he said: “We cannot continue to lose money to force competition. If competing doesn’t make business sense, it’s not going to happen.” Armstrong told reporters after speech that AT&T would “no longer go into markets and lose big sums just to show we're competing.” If nothing changes, “we will be forced to shut down our local service business in N.Y. and Tex.,” he said.