CHTR & T Announce Intent To Exchange Cable Systems To Create Regional 'Super Clusters'
ST. LOUIS, Mo. and ENGLEWOOD, Colo., Dec. 1 /PRNewswire/ -- Charter
Communications (Nasdaq: CHTR) and AT&T Broadband & Internet Services (AT&T
BIS) announced today that they have signed a letter of intent to trade certain cable
systems to create more efficient cable operations and speed the delivery of broadband
technology and services to more consumers.
When the transaction is completed, Charter will take over the ownership of AT&T BIS
cable systems serving approximately 704,000 customers in the St. Louis metropolitan
area and additional communities in Missouri, Illinois, Alabama and Georgia.
AT&T BIS will assume ownership of select Charter cable systems serving
approximately 632,000 customers, and will receive an undisclosed amount of cash.
The systems AT&T BIS will be receiving are in Fort Worth, Texas, as well as select
communities in Massachusetts, Connecticut, California, Tennessee and Kentucky.
"Charter's strategy for growth from the beginning has been to geographically cluster our
cable systems to gain operating efficiencies and economies of scale," said Jerald L.
Kent, president and CEO of Charter Communications. "Operating regional clusters --
like the 800,000-customer cluster we will serve in Missouri and Illinois, which includes
some 500,000 customers in metro St. Louis -- helps us accelerate technology at even
greater speeds. We are upgrading our cable infrastructure to offer customers digital
cable television, high speed Internet and to build in the capacity for full broadband
portal services."
"We are pleased to announce this agreement that will enhance the major markets of
both companies," said Derek Chang, Executive Vice President of Corporate
Development for AT&T BIS. "This exchange exemplifies the continuation of our
strategy to cluster our major markets wherever possible as we strive to offer customers
a wider range of ever-advancing products and services under the AT&T brand."
The proposed swap between Charter and AT&T BIS is subject to completion of
definitive documentation and must receive all required regulatory approvals prior to the
actual closing of the agreement. These approvals are expected to take several months.
Until that time, all properties included in the swap will continue operating under their
current management. Further details of the transaction were not disclosed.
Charter Communications is a Wired World(TM) company offering a full range of
traditional cable television services. The company has also begun to offer services
including digital cable television, high-speed Internet access and paging and is
introducing interactive video programming. All of these services are important steps
toward the realization of the Wired World vision where cable's ability to transmit voice,
video and data at high speeds will enable it to serve as the primary platform for the
delivery of new services to the home and workplace. Charter is the fourth largest
operator of cable television systems in the United States, serving approximately 6.2
million customers, after giving effect to a pending acquisition. The chairman of Charter
Communications is Paul G. Allen. Jerald L. Kent is the company's president and CEO.
More information about Charter can be accessed on the Internet at
www.chartercom.com.
AT&T Broadband & Internet Services is one of the nation's leading providers of video
and broadband data services. Formerly known as Tele-Communications, Inc. (TCI) prior
to the Company's recent merger with AT&T, AT&T Broadband & Internet Services is a
business unit of AT&T that provides cable television entertainment and information
programming services to more than 10 million customers across the country. The
Company also provides a host of advanced services through AT&T Digital Cable
offerings and its high-speed cable Internet service AT&T@Home, and is actively
developing competitive local cable telephone services. AT&T Broadband & Internet
Services is part of AT&T Corp. (NYSE: T), the world's leader in telecommunications
services and technology.
SOURCE AT&T Broadband & Internet Services
/CONTACT: Media, Anita Lamont, 314-543-2215, or Andy Morgan,
314-543-2217, both of Charter Communications; or LaRae Marsik or Tracy
Hollingsworth both of AT&T BIS, 720-875-5273/ |
