IP: from EDUCAUSE -- AT&T DEFENDS MEDIAONE DEAL AT FCC HEARING

[Dave Farber <farber@cis.upenn.edu>]

AT&T justified its proposed purchase of MediaOne Group by saying
it would offer consumers a wider variety of local phone and
high-speed Internet services. By 2004, AT&T's local phone
business could have a 30 percent penetration rate in its cable
markets, AT&T General Counsel Jim Cicconi said during an
FCC-sponsored public hearing Friday. However, critics are
concerned about its history of local phone deployment, citing its
actions after the acquisition of cable operator
Tele-Communications. Some also believe that AT&T would have an
unfair amount of control over Internet content via its Liberty
Media Group assets. Although AT&T contends that its holdings
would comply with the FCC's 30 percent ownership restriction,
critics believe the deal would allow AT&T to hold as much as 60
percent of the market. FCC officials asked Cicconi about the
company's plans to ensure that it will not participate in
programming decisions. The agency also asked about AT&T's plans
for open access. (Wall Street Journal, 7 Feb 2000)