AT&T tells feds merger feeds need for speed
Crix say match would tighten cable competish
But critics testifying at the same hearing told FCC officials that the merger of AT&T, which already owns the former Tele-Communications Inc., would further tighten an already highly concentrated cable TV programming marketplace.
As the FCC decides whether to approve the deal, the critical element is how the agency handles AT&T's 25% stake in Time Warner Entertainment. AT&T maintains that its stake should not be counted against the 30% cable ownership cap since it has no management stake in Time Warner. If the FCC decides that it should count AT&T's Time Warner stake, it would give the telco a total cable coverage of 39% of the country -- well over the current limit.
Media watchdog Andrew Schwartzman, a critic of the merger, urged the FCC to "slow down and give this record a full look."
Opponents of the deal also expressed concern that the combined AT&T-MediaOne would dominate the high-speed Internet access business. Advocates told the FCC that the deal would give AT&T access to 98% of the nation's high-speed Internet subscribers.
