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To: ahhaha who wrote (3043)	11/2/1998 5:50:00 AM
From: Robert Scott	Read Replies (1) \| Respond to of 29970

"You can't maintain the separation of telephony local and long on the fiber network. Voice messaging can be made indistinguishable from text messaging within the transfer power of cable. ATT could become a local and long communications company in violation of the FCC's ruling." Now I'm confused. The telecom act mandated competition. The problem all along has been that the RBOC's have not opened up their markets and as such have been prevented from offering long distance service. Their is no restriction on the Interexchange carriers (long distance carriers) from entering local service market because there is competition in long distance. Problem is the other way around. I can see no reason why the FCC would block the ATT/TCI merger because of ATHM. There is no requirement that a long distance carrier must build a local network. ATT bought Teleport; WCOM bought MFS - both of whom provide local access to businesses. The RBOC's are screaming because they want to hold up competition in local access until they can position themselves properly - which is never going to happen. They are the ones who are depriving all of us of reasonable rates for local access. They are the ones who have put up every possible roadblock to meaningful competition. The FCC may see this and welcome an entrant that can force them to start competing. We've been under the act for nearly 3 years and nothing has happened except the RBOC's are merging - what a disgrace - I can't wait to dump Bell Atlantic.

To: ahhaha who wrote (3043)	11/2/1998 9:03:00 AM
From: ERM	Read Replies (2) \| Respond to of 29970

Seems to me that there are two possible scenarios in addition to a cancelled merger: 1) limitations will be placed on the T/TCI transaction relative to telephony only. You correctly point out that any restrictions are unnecessary/redundant because of the Cable Act, but it could be a political face-saving gesture. 2) TCI is forced to divest itself of its interest in ATHM. While this is worse than option 1, it's not that bad for ATHM. Other than its size, TCI is the worst of ATHM's owners due to the shape of its plant. Even with T's billions, it will take years to get all that plant ATHM-capable. ATHM's remaining MSO partners/clients, their international ventures, and their @Work group will provide significant growth for the foreseeable future.