All SONS customers (SBC, AT &T and Time Warner)
bizjournals.com
San Antonio Business Journal - 9:58 AM CDT Thursday
SBC, AT&T extend network services relationship with Time Warner
Telecom
In the wake of SBC Communications Inc.'s planned $16 billion merger
with AT&T Corp., the two companies have decided to sign an extended
network services arrangement with Time Warner Telecom.
This will allow San Antonio-based SBC (NYSE: SBC) -- the surviving
company -- to offer local and long-distance telephone service to
business customers outside its 13-state territory.
Bedminster, N.J.-based AT&T (NYSE: T) entered into a long-term
agreement with Time Warner Telecom (NASDAQ: TWTC) in Littleton,
Colo., originally on Jan. 1, 2001.
AT&T is leasing local access lines from Time Warner Telecom, and
Time Warner, in turn, is giving AT&T the right to terminate long-
distance and international calls.
Under this latest agreement announced Thursday, the contract between
Time Warner Telecom and the combined SBC-AT&T would be extended
through Dec. 31, 2010 upon completion of the merger.
"This agreement enables SBC, post-merger, to become a more effective
out-of-region provider, thereby enhancing competition in the
industry nationwide," says Mark Keiffer, senior vice president-
business marketing for SBC. "SBC is pleased to build upon the long-
term business relationship AT&T has had with Time Warner Telecom."
SBC and AT&T announced plans on Jan. 31 to combine the two
companies, creating a global powerhouse telecommunications firm. The
deal, if approved by regulators, would be complete in either late
2005 or early 2006.
"Time Warner Telecom has been a valuable supplier of 'last-mile'
network services used to connect our corporate customers to the AT&T
network in many markets around the country," says Regina Egea, AT&T
vice president of global access strategy and bandwidth product
management. "We're very pleased this relationship will continue once
our merger with SBC is completed."
In a separate agreement, SBC will provide Time Warner Telecom with
network access in SBC's traditional in-region territory for five
years.
That deal, which is set to take effect Thursday, should strengthen
Time Warner Telecom's ability to compete effectively for the
nationwide business market.
SBC provides voice, data, networking, e-business, directory
publishing and advertising services to homes and businesses.
AT&T is a global leader in local, long-distance, Internet and
transaction-based voice and data services.
Time Warner Telecom provides telecommunications and managed network
services to corporate and institutional customers.
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