Divicom customer out of video for the next few years. Bell Atlantic......................................
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Bye Bye Bell Atlantic: It'll be 'Several Years' before BOC Pursues Video
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Blaming technical issues, market dynamics and new competition, Bell Atlantic [BEL] told us yesterday it'll be "several years" before it pursues video deployments beyond its Dover Township, NJ test market. Word of Bell's caution in the video market came as it pulled out of its $100mln investment in CAI Wireless, closing the door for now on using the MMDS spectrum to capture market share from cable. Cable ops in Bell's northeast corridor markets shouldn't be too content, though: cable modem revenue is threatened by Bell's new priority to deploy DSL Internet access products. MSOs note also that Bell says it may pursue "interim strategies" to enter the video market before it completes construction of full-service networks. Last year Bell touted that it would deploy video over full-service networks, starting with Philadelphia in '98. "The company is still building broadband networks, but it's not using video to accelerate it," a spokesperson says. Meanwhile, CAI is still pursuing a strategic partner with cash following Bell's pullout, and the subsequent folding of the TeleTV wireless video venture. CAI hopes FCC will allow it to use MMDS to offer 2-way data, video and telephony applications, CFO James Ashman told us Wed. |
