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Subject:  Re: ATT&T/TWX/ATHM sort out Date:  2/2/1999  10:08 AM
Author:  Scollag Number:  4077 of 55215

My initial concern was that T (thru absorbing TCOMA and thus effective voting control of ATHM) would prevent ATHM from venturing into telephony--a natural extension of its cable entre. Also, that T's dumping its none-too-successful Worldnet on ATHM would likewise be of no advantage to ATHM.

In business development terms, ATHM has never possessed what I would call an entree. The entree service is the one that provides the conduit. Cable TV has a phenomenally high penetration, and it is this success that both AT&T (for telephony) and ATHM (for cable access) intend to leverage for their own services.

At the risk of tedious repetition, AT&T's potential market for CLEC service is twice the size of ATHM's.

As for Worldnet, I think we should look on the proposed sale as an exercise to focus on core competencies. The revenue stream, and demand stimulation, help ATHM.
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