Ampex May Benefit From AT&T-TCI Merger
Could Ampex's technology play a part in the post merger of AT&T & TCI?
NASHVILLE, Tenn., July 5 /PRNewswire/ -- Wall Street's harsh reaction to the AT&T-TCI merger ignores the new profit streams just around the corner, according to Stephen Brown, President of Mid-South Economic Valuation, an economic consulting company in Nashville. ''The Street hasn't factored in digital TV as a positive force, among other things. There have been a lot of headaches over DTV but those could be over soon,'' said Brown, ''later this year the FCC is going to decide on modulation schemes and protocols for programs and system information.'' AT&T is in a strong position to benefit from the FCC's actions. ''The company could be a big player in the DTV and digital interface markets, whether the interface is a set top box or something else,'' added Brown.
''Whatever digital standard the FCC picks will require plenty of bandwidth and that's a perfect reason for AT&T to deploy new technology. A Dual 622 Mbps bi-directional low-cost cable system is being offered by Khamsin Technologies, an easy way to deliver DTV to businesses and homes. That's enormous capacity,'' said Brown. ''All of a sudden AT&T is in the position to offer DTV, Internet connections at T3 speed and color video telephones at the same time with room to spare for more applications. The merger's critics are blind to the profit potential for AT&T and for a whole new army of entrepreneurs who will use the enormous capacity of that 'last mile' system to reach the huge customer base of AT&T-TCI, '' Brown added. The system was developed ''to match the country's desire for true broadband communications in the local loop,'' according to Mitchell Cotter, Chief Scientific Officer for New World Paradigm, the company that designed the system.
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