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To: Midtown eBoy who wrote (28961)8/9/1999 3:48:00 AM
From: Midtown eBoy  Read Replies (4) | Respond to of 41369
 
AT&T, AOL mulling cable access deal-New York Times
Reuters Story - August 09, 1999 02:27
NEW YORK, Aug 9 (Reuters) - Phone giant AT&T Corp and Internet service provider America Online Inc. are considering a deal to grant AOL and possibly other ISPs "enhanced access" to AT&T cable systems for Internet links, the New York Times reported in Monday's edition.

Citing executives close to the companies, the daily said the companies could be working toward a pact that could diminish the role in the industry of ExciteAtHome , which provides Internet links over cable lines.

AT&T and America Online declined to comment, the paper said. The two companies have feuded over access to cable systems in the past.

The newspaper said such a deal would enable AT&T and America Online to take advantage of each others' technical and marketing strengths.

The Times reported that ExciteAtHome may have received warning of developments two weeks ago at a board meeting.

Then, AT&T's Chairman C. Michael Armstrong, an At Home director, expressed concern that At Home's business of using cable modems to hook up Internet users might not be a "great strategic fit" with Excite's Web portal service, according to a person at the meeting.

AT&T has a 58 percent voting stake in ExciteAtHome.

The source quoted Armstrong as saying it might make more sense for At Home to focus on high-speed communications links, while considering selling or spinning off Excite's Web content business, the Times said

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