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À ?        ? ? ?      ?    8?       ? ? ~  ?  ? ?  ? ?  ?    ?  ? ??  ?   ?   ? ??  ?   ?  ? ? ? ? ? ? ? ? ?  ? ?   ?   ?   ?  ?  ? ?? ? ? ??? ~?   ? ? ? ?? ? ??  ? ? ??  ?  ?  ?À? ? ?? ?? ?? ? ? ? ?? ?? ??? ? ?? ?? ? ? ?? ? ?? ??  ??  ???  ?  ?  ? ?? ??  ?  ?  >?  ?  ?? - ?: 9 4ǀ? ?4 4 4? 4 4 4 4 5? 5 4 ?4 ?4 5 5 5 ?1? ?1 ?1 ?1 ?0 1x 1 / /? ?/π / / / .? ??.? ?. <. - - - --,,?,,-?----?+?* ??* ?+,>,,,?,?,?,--.?.?.?.%?À%%%%%%?%%?%?%?%&&'''?'?'?''?'())))x)?)?)?))*+++ǀX? π? ? ??? ##?&#&#? %#0%#x?%#?x%#?|%#?%#?%#?%#?%#%#%#%# ?%# $# ?$#?$# $# ?$# $#$#$#$#$#$#$#$###??####?##?##?#$ ?#$'$?'$'*'*'+'++XCx  `$A#`p7#News media Information 202 / 4180500 `$ARecorded listing of release and texts `"$I202 / 4182222 #&p7&#Federal Communications Commission 1250 Maryland Ave., S.W. Washington, D. C. 20554 #xp7#y: m dddy #,Hp7,#This is an unofficial announcement of Commission action. Release of the full text of a Commission order constitutes official action. See MCI v. FCC. 515 F 2d 385 (D.C. Circ 1974). y:  dddy  Figure 1  Figure 1 yHH,@Uddfcclogo.wpgHHy 1  1 X#p7# NEWS ĺڑ X #X P7XP#Report No. CS 992 CABLE SERVICES ACTION February 17, 1999 CITING PROCOMPETITIVE BENEFITS TO CONSUMERS, | COMMISSION APPROVES AT&T TCI MERGER The Commission has adopted an Order approving the transfer application of TeleCommunications, Inc. ("TCI") and AT&T Corp. ("AT&T") subject to the following conditions: (1) the transfer of TCI's ownership of Sprint PCS tracking stock prior to consummation of the merger to a trust pursuant to a trust agreement that has been approved by the Commission; and (2) AT&T's adoption of its proposed policy statement regarding its policy for distribution to Liberty Media Group shareholders of the economic benefits of its ownership of the Sprint stock. The Commission reviewed the four services affected by the proposed merger: multichannel video programming distribution ("MVPD"), local exchange and exchange access, Internet access, and mobile telephony. The Commission concludes that the merger, as conditioned, is likely to result in benefits for consumers, including a local telephony alternative for many residential customers now served only by incumbent local exchange companies, without creating competitive harm with respect to other services. The Commission received 31 comments and reply comments and numerous ex parte submissions regarding this merger. Key issues raised by the commenters and addressed by the Commission include: CMRS spectrum cap. The Commission will require the transfer of TCI's ownership of Sprint PCS tracking stock prior to consummation of the merger to a voting trust that will shield the merged company from the Commission's CMRS spectrum cap attribution rules. In addition, AT&T must adopt its proposed policy statement regarding the distribution to Liberty Media shareholders of dividends and other economic benefits associated with its ownership of the Sprint stock. Open access to broadband facilities for the provision of Internet services. Finding that the merger will not harm competition for Internet services, the Commission refrains at this time from imposing conditions with respect to open access to the merged company's broadband facilities.  Regulation of the Merged Entity as a LEC or incumbent LEC. T he Commission determines that, as the merged firm begins to provide telecommunications services, the systems offering such services will become subject to the requirements set forth in Section 251(a) of the Communications Act. To the extent the merged firm provides local exchange service, it will be subject to Section 251(b). The Commission rejects requests that AT&TTCI be classified as a "comparable carrier" subject to the unbundling, resale, and other requirements of Section 251(c).  Program access. The Commission affirms that the merger will not shield AT&TTCI from the program access rules. Liberty Media will be a wholly owned subsidiary of AT&T, and the merged company therefore will fall within the scope of the rules. The Commission declines to impose program access restrictions beyond those specified by the rules.  On October 22, 1998 and December 14, 1998, the Commission held en banc hearings on the merger. Action by the Commission February 17, 1999, by Memorandum Opinion and Order (FCC 9924). Chairman Kennard, Commissioners Ness and Powell, with Commissioner FurchtgottRoth concurring in the result and Commissioner Tristani approving in part and dissenting in part. Chairman Kennard and Commissioners FurchtgottRoth and Tristani issuing separate statements. Щ FCC  News Media contact: Morgan Broman at (202) 4182358. Cable Services Bureau contact: Royce Dickens at (202) 4187200 TTY: (202) 4187172   m  #& P7&P#Statement of William E. Kennard Chairman of the Federal Communications Commission On ATT/TCI X` hp x (#%'0*The Commission today approved the AT&T/TCI merger. Although the Justice Department proceeding is not yet complete and the company has not yet obtained all relevant franchise approvals, I am cautiously optimistic that, once these other entities conclude their reviews, the American people will benefit from this merger. That's why I voted for it. I am optimistic because the combined resources of AT&T and TCI surely will generate a very substantial effort to expand the choices now available to residential phone subscribers in TCI territories. These companies will launch an enormous undertaking to add telephone capabilities to cable services, thus fulfilling one of the goals of the 1996 Telecommunications Act to stimulate rivalries between formerly noncompeting technologies and industries. Congress specifically envisioned the provision of local telephone service over the cable television infrastructure, and this merger will directly promote that goal on a widespread scale. I am especially pleased by the commitment of AT&T Chairman Michael Armstrong that AT&T will offer service uniformly in all neighborhoods in every city it serves, and that it will pursue every opportunity to bring the most advanced communications services and equipment to our inner cities as well as to our nation's most rural and remote areas. My optimism about this merger, however, is tempered by caution. We need to remind ourselves that mergers by themselves do not bring competition. Investment and deployment of resources, including facilities, bring competition. Combining companies does not expand consumer choices. Building alternative pathways and exploiting new technologies does. The merger of AT&T and TCI may be an end in itself for the companies' shareholders, but that is of no consequence to the FCC. Our job is to advance consumers' welfare. For this reason, to the Commission, the merger is not an end, but at most a beginning endash the beginning of a competitive telecommunications marketplace where Americans have the choice from which to select the best services right for them. During our review of this merger, a number of parties raised questions regarding access to cable networks by Internet Service Providers (ISP). While these concerns are important, they are not unique or specific to this merger. The development and deployment of highspeed, broadband Internet access is one of the most important issues facing us today. It is the foundation of our future economic growth and national strength. It is an issue that I take very seriously. However, given the early stage of deployment of cable's high speed Internet access services, it would be imprudent to act now. In the meantime, we are relying on AT&T's commitment that subscribers will have direct access to the content and online service providers of their choice. We will continue to monitor these developments to see how the market develops and how these new highspeed services are benefiting consumers. At this nascent stage in the development of the market, one should not presume to have a regulatory cure for every anticipated marketplace ailment. We must allow the marketplace to evolve. It is my hope that through this combination the parties will work to tear down the boundaries that have needlessly separated telecommunications technologies and will focus just as intently on bringing all Americans the advanced telecommunications services that the world has to offer. -FCC X` hp x (#%'0*,.8135@8:FaxOnDemand 202 / 4182830 `2$@Internet: http://www.fcc.gov `!$G ftp.fcc.gov #&X2p &#Federal Communications Commission 1919 M Street, N.W. Washington, D. C. 20554 #^2p G;#y:  dddy #,02p ,#This is an unofficial announcement of Commission action. Release of the full text of a Commission order constitutes official action. See MCI v. FCC. 515 F 2d 385 (D.C. Circ 1974). y: 5 dddy  Figure 1  Figure 1 yHH@Uddfcclogo.wpgHHy 1  1 X# 2p # NEWS ĺځ X #X P 7XP# February 17, 1999 f Press Statement of Commissioner Susan Ness ă  Re:In the Matter of Applications for Consent to the Transfer of Control of Licenses and Section 214 Authorizations from TeleCommunications, Inc. to AT&T Corp. The merger we approve today promises to give many Americans their first opportunity to have a meaningful choice for local telephone service. Since passage of the Telecommunications Act of 1996, we have seen a number of developments, including mergers and strategic alliances, that have enhanced competition in telecommunications markets primarily devoted to business customers. This is the first major merger that seems driven by the prospect of enhancing competitive choices to residential customers. In addition, the broadband services that are to be deployed by AT&T/TCI may prod local exchange carriers to accelerate their offering of high speed broadband services to residential customers. Greater competition among broadband services should help alleviate concerns about vertical integration and "bundling" of proprietary information with Internet access. Having closely examined the arguments raised for and against this merger, I expect that this marriage of titans will bring average Americans new choices, lower prices, and better customer service.#& P7&P# #X P7XP#   #XN\  PXP#h SEPARATE STATEMENT OF COMMISSIONER HAROLD FURCHTGOTTROTH ă Re:444Applications for Consent to the Transfer and Control of Licenses and Section 214 Authorization from TeleCommunications, Inc., Transferor, To AT&T Corp., Transferee, CS Docket No. 98178 I concur wholeheartedly in the result of this Memorandum Opinion & Order: namely, that the Commission approves TCI's application to transfer station licenses and authorizations to provide international resold communications services to AT&T, subject to compliance with existing FCC wireless spectrum cap rules. In particular, I commend the Commission staff for their prompt action on these applications, and I hope we can process other transfer applications with like timeliness. While I support the bottom line in the Order, I cannot sign on to the general reasoning that underlies it. I do so because the Order focuses its review erroneously, to my mind on the larger business transaction of the merger as opposed to the simple transfer of radio licenses and international resale authorizations.  Merger Review Authority I do not believe that the Federal Communications Commission possesses statutory authority under the Communications Act to review, writ large, the merger of AT&T and TCI. X` hp x (#%'0*,.8135@8:February 17, 1999  SEPARATE STATEMENT OF COMMISSIONER GLORIA TRISTANI, DISSENTING IN PART Đ Re:444Application for Consent to the Transfer of Control of Licenses and Section 214 Authorization from TeleCommunications, Inc., Transferor to AT&T Corp., Transferee While I support the bulk of today's Order, I respectfully dissent on one issue: the majority's refusal to impose a reporting requirement to monitor the upgrade of TCI's cable facilities to provide local telephony, highspeed data and other advanced services. Under the Commission's merger framework, we must weigh the costs and benefits of a proposed transaction to determine whether it would serve the public interest. I believe that the merger of AT&T and TCI has the potential to benefit millions of American consumers by bringing together the complementary assets of these two companies. In the area of telecommunications, AT&T has considerable expertise and an unmatched brand name. TCI possesses a broadband pipe that covers the crucial "last mile" to consumers' homes. This should allow the merged company to furnish local telephone service and high speed Internet access more rapidly and effectively than either company could separately. At this point, however, the plans for this to happen are just plans. That is why I place great emphasis on the parties' express commitment (reiterated most recently in a February 8, 1999 letter from AT&T's Chairman) to upgrade its facilities on a fair and nondiscriminatory basis. I believe that in order for this merger to serve the public interest, it is vital that all regions and all neighborhoods share in the merger's promised benefits. Based on my examination of the maps and deployment schedules submitted by AT&TTCI, I am satisfied that the merged entity is planning to upgrade its facilities in a manner consistent with that important goal. My disagreement with the majority lies not in its assessment of the merged entity's current deployment plans, but in its unwillingness to monitor whether those plans are carried out. As I've said in the context of the MCIWorldCom merger, a minimal reporting requirement seems to me an eminently reasonable way of determining whether a company follows through on the commitments it makes in obtaining merger approval. If AT&TTCI intends to honor its deployment commitments, as I assume it does, I can see no harm in keeping the Commission apprised of its progress. A short status report every six months can hardly be characterized as burdensome given the size and nature of the merger and the importance of the issue involved.I recognize that business plans change and that unforeseen events can upset even the bestlaid plans. If that happens, a reporting requirement would not mandate that the proposed deployment schedule be adhered to, but simply that the merged entity explain how and why the schedule could not be kept. The difference I have with the majority is that if the deployment plans change I would prefer to know about it. The majority, apparently, would not. Given the stakes involved, especially for rural and lowincome Americans, and our continuing obligation to monitor the deployment of advanced telecommunications capability under Section 706 of the Telecommunications Act of 1996, I believe we should err on the side of having more information rather than less. HHHH