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Technology Stocks : Broadband Wireless Access [WCII, NXLK, WCOM, satellite..] -- Ignore unavailable to you. Want to Upgrade?

To: SteveG who wrote (96)	4/23/1999 4:07:00 PM
From: SteveG	Read Replies (1) \| Respond to of 1860

more on T from ML: from Michael E. Ching Positive Development for Cable Telephony Investment Highlights: · We believe that AT&T's offer last night to purchase MediaOne Group further supports our thesis that coaxial cable is an attractive physical media to transmit both telephony and Internet services. · We estimate that it costs between $100-300 million to upgrade a typical city's coaxial cable plant to support telephony and Internet services. This represents a significant opportunity for several of our companies. · ADC Telecommunications's (ADCT, C-2-1-9, $45 ¾) Homeworx access platform currently supports telephony over coaxial cable. ADCT is working with Cisco to include an IP capability in the product. Homeworx is being used by MediaOne in Atlanta and Los Angeles for commercial service to several tens of thousands of customers. ADCT's contract with MediaOne was originally valued at $100 million over three years. · Tellabs' (TLAB, B-2-1-9, $111 ¾) CableSpan telephony distribution system is being used by MediaOne in Florida. Tellabs' contract with MediaOne was also originally valued at up to $100 million over three years. · TCI, which recently merged with AT&T, is considering using their coaxial cable for telephony and Internet applications. AT&T/TCI is currently evaluating Homeworx and CableSpan, with quality of service the primary criteria. Given MediaOne's experience with both products, a successful acquisition of MediaOne by AT&T could help in accelerating a positive evaluation for both ADC Telecommunications and Tellabs. ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ ML from Jessica Reif Cohen Investment Highlights: · AT&T's offer to buy Media One provides continued confirmation of the inherent value and appeal of cable's broadband plant. · We view either of the announced offers for Media One (Comcast or AT&T) as positive for Time Warner in terms of providing for a smoother and more effective relationship with Media One in terms of the TWE partnership. · However, we believe a Comcast/Media One combination would be more beneficial for Time Warner in terms of the jointly controlled and managed TWE assets. · We would view a roughly 20% stake in TWE in the hands of AT&T as increasing the uncertainty surrounding the eventual restructuring of the TWE partnership. · Maintain our Buy rating on Time Warner and $85 price objective. We view AT&T's counter-bid to acquire Media One, approximately one month after Comcast and Media One agreed to merge, as continued confirmation of the inherent value of the cable plant in terms of delivering the most effective and efficient broadband pipe into the home. The cable industry's rampant consolidation together with successful unfolding of new service offerings should help to justify their historically high valuations as well as provide a strong platform for continued multiple expansion and price appreciation.

To: SteveG who wrote (96)	4/25/1999 3:16:00 AM
From: Darren DeNunzio	Respond to of 1860

Japan Telecom reaches agreement with AT&T, BT TOKYO, April 24 (Reuters) - Japan Telecom Co, Japan's number-three phone operator, has reached a basic partnership deal with global heavyweights British Telecommunications Plc (BT) and AT&T Corp, NHK television said on Saturday. The reported deal is to be the first large investment by foreign majors in Japan's deregulating telecoms sector. According to the agreement, the combined stake of the two companies in Japan Telecom, which provides leased-line and long distance services through fibre optic networks running along railway lines, would be 15 percent each for a combined total of 30 percent, NHK said. The three also agreed to cooperate in the data transmission business, with BT and AT&T each acquiring a seat on Japan Telecom's board of directors, NHK said. A formal announcement will be made on Sunday, NHK added. No one was immediately available at Japan Telecom for comment on the reported agreement, which has long been expected in the market. Japanese media reports on Thursday said BT and AT&T would pay about 180 billion yen ($1.5 billion) each for 15 percent stakes in Japan Telecom. The reported deal would be a setback for BT and AT&T, as they had aspired to take nearly 40 percent of Japan Telecom -- enough to have a veto over major management decisions. Japan Telecom, BT and AT&T had declined to comment on these reports beyond acknowledging that they were in talks. The reported agreement would bring major benefits to BT and AT&T, allowing them access to corporate clients in Japan and jump-starting their data business via Japan Telecom's established network. For Japan Telecom, exhausted by competition to cut rates and weighed down by heavy investment burdens, the deal offers a quick infusion of cash. Given the company's huge funding requirements, some analysts have said BT and AT&T will have to make additional investments soon, with the Japanese carrier eventually ceding substantial management control to them. Observers have argued that the foreign entry, at least in the near term, would bring few changes to the industry landscape, which is overwhelmingly dominated by former state monopoly Nippon Telegraph and Telephone Corp (NTT). But industry analysts have said that more cross-border link-ups are inevitable, and that this could even include NTT, as telecoms operators work to establish global networks to meet the needs of multinational companies. NTT is currently engaged in an increasingly acrimonious takeover battle with Britain's Cable and Wireless Plc (C&W) over International Digital Corp (IDC), a small international service provider. The takeover saga is expected to drag on for months.