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Technology Stocks : IATV-ACTV Digital Convergence Software-HyperTV -- Ignore unavailable to you. Want to Upgrade?

To: Stealhead who wrote (4630)	6/9/1999 6:33:00 PM
From: Bruce Cullen	Respond to of 13157

More FYI ======================= Wednesday June 9, 6:04 pm Eastern Time AT&T says AtHome pact strong, growth on track NEW YORK, June 9 (Reuters) - AT&T Corp. (NYSE:T - news) on Wednesday said its relationship with Internet service provider AtHome Corp. (Nasdaq:ATHM - news) remains strong and that the No. 1 U.S. long distance phone company is on track to meet its financial growth targets. AT&T Chairman C. Michael Armstrong said, ''I want to relieve any apprehension ... the relationship (with AtHome) is very strong and close.'' Shares of AtHome have weakened recently after a judge in Portland, Ore., said AT&T must open its cable network to other Internet service providers. Some investors perceived that ruling as damaging to AtHome, since AtHome is currently one of AT&T's main vehicles for rolling out Internet services over cable television wires. ''A lot of the deployment of the future of this whole broadband revolution is based on the collaboration of the cable industry and AtHome,'' Armstrong said at the PaineWebber Growth and Technology Conference in New York. AtHome has been a good financial investment for AT&T, Armstrong said. AtHome's market capitalization appreciation has more than compensated for the premium AT&T paid in its recent purchase of the cable company Tele-Communications Inc. The TCI deal gave AT&T a major stake in AtHome. AT&T also reiterated that it expects revenues in its business operations, which are currently $30 billion a year, to grow about 7-9 percent in 1999. It also expects its data operations to grow more than 20 percent, and it expects its Internet business, which was $1 billion in 1998, to grow about 50 percent. Its local telephone operations that serve businesses should grow about 80 percent to $1.6 billion in 1999. Its solutions business, which provides computer and network consulting services, is about a $1 billion a year business now, but should grow to $5 billion a year within 5 years. Armstrong said the company's Digital One Rate wireless phone plan is adding 100,000 customers a month and the average monthly revenues per subscriber are more than $100. Armstrong reiterated that the company expects to reach 24.5 percent of U.S. households through its purchase of TCI and its pending acquisition of MediaOne Group Inc. (NYSE:UMG - news). AT&T said that some media estimates that it would reach 60 percent of U.S. households were not accurate. The company declined to comment on industry rumors that it is trying to unravel some cable affiliations and partnerships to speed up regulatory scrutiny over the MediaOne acquisition.