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Technology Stocks : LAST MILE TECHNOLOGIES - Let's Discuss Them Here

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To: Kenneth E. Phillipps who wrote (3435)	4/22/1999 6:48:00 PM
From: MikeM54321	Read Replies (2) of 12823

Ken, Pretty amazing. AT&T is laying it all out on the line for HFC being the way for them to solve the last mile bandwidth problems AND their local access problem. One has to keep in mind how much they spend each year paying the CLEC's access fees. I recall it being a substantial figure. Somewhere in the tens of billions($$). In that context it makes good sense for them to buy the cable plants of MSOs. I was hoping a competitor of AT&T would get in on the act and try to snap up cable companies, but so far AT&T appears to be the only big player. Well at this stage in the game, AT&T must have a great deal of confidence in their forecasts to be willing to make these significant investments. Good news for HFC equipment companies. MikeM(From Florida) -------------------------- AT&T in bid for MediaOne NEW YORK, April 22 - AT&T Corp. late Thursday said it was offering to acquire cable television company MediaOne Group Inc. UMG in a cash and stock deal valued by AT&T at $58 billion based on its stock price at Wednesday's close. Following are Wall Street analysts' responses: ARTHUR HOGAN, CHIEF MARKET ANALYST AT JEFFERIES & CO: "It's a huge, huge deal. It's all about bandwidth, it's all about Internet access (and) MediaOne certainly is the front-runner in realizing bandwidth is important." Hogan predicted the bid would accelerate consolidation in the industry and predicted other stocks would get a bounce, including Cox Communications Inc. COX , Cablevision Systems Corp. CVC and Jones Intercable JOIN . "These things tend to feed on themselves," Hogan said. STEVEN COHEN, DIRECTOR OF RESEARCH AT ARBITRAGE FIRM KELLNER, DILEO & CO: "It's evident from the announcement that this is a very detailed proposal. AT&T must have been considering this for a long time. It is extremely impressive that Chase Manhattan and Goldman Sachs are each contributing $5 bilion toward the transaction. My guess at this very early juncture is that Comcast (Corp. CMCSA ) will not be able to compete with this bid and that the MediaOne board cannot ignore it because it appears to be far superior to what Comcast is offering. My guess right now is that AT&T ends up with the company." PHILIP ORLANDO, CHIEF INVESTMENT OFFICER OF VALUE LINE ASSET MANAGEMENT: "I think (AT&T Chairman and Chief Executive Michael) Armstrong is capable of pulling this off. He certainly seems to have a better feel for this kind of thing than (former Chairman) Bob Allen did. You certainly have a different culture there at AT&T under the new CEO and it certainly seems to be working."

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