AT&T said Tuesday it completed its US$55 billion acquisition of Tele-Communications Inc., creating a one-stop shop for phone service, Internet access, and cable television.
AT&T (T), the largest US long distance company, also plans to compete with regional Bell phone companies by providing local phone service over TCI's cable TV wires.
"The closing of the TCI merger is a huge step forward in the transformation of AT&T to an 'any-distance' company," said C. Michael Armstrong, AT&T's chairman.
Since the break-up of AT&T and the creation of the Baby Bell local phone companies in 1984, AT&T has lost control of the local phone lines that connect directly to customers' homes and businesses.
But by using cable TV wires to provide phone service, AT&T can bypass the Baby Bells' phone lines, and the costly access charges, to reach customers.
In the coming months, the cable and new phone services will be offered under the AT&T brand name. AT&T plans to pilot telephone service over the cable networks in 10 US cities by the end of the year.
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