Hindery, Head Of AT&T's Cable And Internet Operations, Steps Down
OCT 06,1999
NEW YORK -(Dow Jones)- AT&T Corp., in the midst of a high-profile dispute
for not giving rival Internet-service providers direct access to its recently
acquired cable television systems, Wednesday announced the departure of Leo J.
Hindery Jr., head of AT&T's cable and Internet businesses.
New York-based AT&T (T) said Hindery is leaving his post as president and
chief executive officer of AT&T Broadband & Internet Services, or ABIS, to
"pursue other interests." Hindery will continue to serve as a "strategic
advisor" to AT&T CEO Michael Armstrong on cable-related issues.
Daniel Somers, currently senior executive vice president and chief financial
officer of AT&T, will assume responsibility for ABIS's day-to-day operations
until a permanent replacement for Hindery is named.
In addition, AT&T said Amos Hostetter, nonexecutive chairman of ABIS and an
AT&T board member, will spend more time at ABIS' headquarters in Denver,
working on the development of AT&T's broadband strategy, staffing and industry
relations.
Armstrong said the company's plans to roll out new broadband services remain
on target, including cable-based telephone trials in eight cities by the end of
the year.
In recent months, AT&T and America Online Inc. (AOL) have been involved in a
high-profile dispute over access to the millions of homes AT&T is upgrading
from traditional cable service to high-speed Internet access. Shares of Excite
At Home Corp. (ATHM) have gyrated in recent days amid persistent rumors that
controlling shareholder AT&T is exploring a deal with AOL that would involve
major changes for Excite At Home.
AOL has asked the government to force AT&T, now the largest cable operator
in the U.S., to open up its cable lines to AOL and other rivals in the name of
open access. Excite At Home is the exclusive provider of Internet service for
customers of AT&T and some other cable systems.
Making matters even more complicated, Hindery publicly sparred with Tom
Jermoluk, Excite At Home's chairman and CEO.
The New York Times Wednesday reported AT&T has decided to offer rivals
access within a few years and is trying to find ways to demonstrate that
commitment. With such a pledge, AT&T could deflect stringent conditions that
could be placed on its cable operations by municipal and federal regulators.
AT&T has said that it cannot move more quickly to open its cable networks
because of a contract that obligates it to give exclusive cable access until
2002 to Excite At Home. AT&T inherited the exclusive contract with Excite At
Home when it acquired the cable systems of Tele-Communications Inc. earlier
this year. Hindery had been head of TCI.
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