[SBC (PacBell) Quits HFC]
Excerpt from Business Wire.............
Curtailment of Video and Hybrid Fiber-Coaxial Initiatives
SBC announced it is scaling back its limited direct investment in
video services, reflecting SBC's determination that it is not
necessary to build wireline video networks to meet the total
communications needs of its customers.
SBC said the decision to curtail its video operations was linked
to the merger with Pacific Telesis and followed careful post-merger
analysis of several options, including partnerships with video
providers. "We've concluded that, at this time, we will continue to
concentrate on growing and investing in our core businesses high
quality, advanced wireline and wireless telecommunications networks,"
Whitacre said. "Our merger with Pacific Telesis reinforces this
emphasis on meeting growing demand for our core products and services
throughout our markets."
SBC will discontinue its broadband network video trial in
Richardson, Texas. In addition, SBC has substantially scaled back
its involvement in the Tele-TV joint venture and is working with
Americast to define the appropriate ongoing role for SBC within the
Americast venture.
In a separate decision, SBC said it is halting construction of
the hybrid fiber-coaxial network in San Jose and San Diego,
reflecting SBC's determination that other network architectures would
be more technologically, operationally and financially viable.
Curtailment of these initiatives will reduce net income in the
second quarter by approximately $500 million.
The company added that recent federal regulatory actions which
force SBC to sell its wireline services and network to new
competitors at below actual cost have prompted the company to
carefully examine all capital expenditures, including those for the
video and hybrid fiber-coaxial initiatives.
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