April 5, 1994

STATEMENT REGARDING SOUTHWESTERN BELL-COX ANNOUNCEME      NT

FCC Chairman Reed E. Hundt today issued the following response to the press accounts of
the end of discussions between Southwestern Bell and Cox Cable on their proposed joint
venture.

"We have no knowledge about the specifics of any particular negotiation.  We are not familiar
with the confidential discussions held by the parties to this negotiation.  However,  the FCC's
unanimous adoption of modifications to its cable rate regulations has in no way put an end to
new ventures in the telecommunications area.  The telecommunication sector of our economy
-- including,  but not limited to cable -- continues to be a vibrant, growing and dynamic
portion of the American and world economy.

"Occasionally parties in negotiations will disagree on price.  In a growing, developing
industry, this is not unusual.  It should be noted that when Bell Atlantic and TCI called off
their merger talks, some initial reports blamed the FCC regulations.  However,  recent press
accounts, as well as the accounts of participants in those talks, have confirmed that in those
discussions the two sides were unable to agree on price.

"In any event, our regulations further the implementation of the 1992 Cable Act.  They are
fair to cable subscribers, who will pay reasonable rates, and fair to cable operators, who have
strong incentives for investment and innovation.

"Incidentally, our rules governing the benchmark rate regulation that we  released  last week
total 14 pages. The forms for compliance with rate regulation total 15 pages for initial
compliance and 6 more to increase prices from time to time. We are quite confident that
pursuant to these rules, cable enterprises have very attractive opportunities to offer new and
unregulated services to their customers and obtain a fair rate of return on further investments,
while continuing to obtain a fair, reasonable profit from delivering their current regulated
programming."


-FCC-