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To: Stephen B. Temple who wrote (2471)2/11/1999 3:11:00 PM
From: Stephen B. Temple  Read Replies (3) | Respond to of 3178
 
AT&T Not Worried About Cable Access

February 11, 1999

WASHINGTON - (AP AT&T, which is
buying cable giant Tele-Communications
Inc., isn't worried for now that federal
regulators might eventually force cable
companies to sell access to their
high-speed lines, its chairman said
Wednesday.

''I don't think it poses any threat
because I think the outcome is going to
be that the industry is going to be open,''
said AT&T's chairman Michael Armstrong.

Armstrong said it's in AT&T's financial
interest to get as many companies as it
can onto its high-speed networks. The
company, along with the cable industry,
opposes government-mandated access to
cable companies' high-speed lines into
their customers' homes.

Instead, AT&T and cable companies
support voluntary agreements for
businesses offering competing services to
gain access to the lines, which allow
people to surf the Internet and receive
data at speeds considerably faster than
normal phone lines.

Last week, Federal Communications
Commission Chairman Bill Kennard said the
agency would not force AT&T to sell TCI's
high-speed cable lines to other companies
as a condition of winning FCC approval for
their merger.

Kennard said the Internet is still in its
infancy and doesn't need new regulations
at this point.

Consumer groups, public interest
advocates, America Online and others had
pressed the FCC to require AT&T to give
other companies access to TCI's lines to
offer competing services.

Those groups have pressed for the same
mandatory access requirements to apply
to all cable companies.

Last month, the FCC declined to open a
proceeding that would force all cable
companies to share their lines with rivals.
But the agency said it would monitor the
situation to make sure cable companies
don't freeze out their rivals.

Through its merger with TCI and a
separate agreement with Time Warner,
AT&T will have access to cable lines
covering 40 percent of U.S. households.
Armstrong said more cable agreements
are needed to boost coverage to AT&T's
goal of 60 to 70 percent of households.

''So ahead of us there has to be more
deals, if you would, with cable
companies,'' Armstrong said.

Separately, Armstrong renewed his call for
the FCC to make a deep cut _ $10 billion
_ in government mandated fees that
long-distance companies pay local phone
companies to connect calls.

A portion of the fee helps make local
phone service affordable for the poor and
people living in rural and
expensive-to-serve areas.

The fees, which are typically passed
along to long-distance customers, have
been going down and now make up about
30 cents of every $1 of long-distance
charges.

United States Telephone Association
President Roy Neel said Armstrong's idea,
if implemented by the FCC, would make
local rates ''go through the ceiling'' and
would put an end to affordable local
phone service.

[Copyright 1999, Associated Press]