BUSINESSWEEK ONLINE : MAY 10, 1999 ISSUE
NEWS: ANALYSIS & COMMENTARY

Shaking Up the Industry


How AT&T's MediaOne bid changes the landscape:

AT&T
The phone company transforms into a broadband juggernaut reaching 60% of U.S. cabled households. But AT&T's buying binge is making shareholders jittery.

COMCAST
If it doesn't counterbid, it and other big cable operators may be forced to consolidate to create clusters big enough to deliver broadband competitively.

MICROSOFT
With $1 billion already invested in Comcast, Microsoft may want to limit AT&T's control of broadband software and technology by helping a Comcast counterbid.

AMERICA ONLINE
Since cable-modem services At Home and Road Runner could end up under AT&T's roof, AOL might back Comcast to ensure itself a seat at the high-speed access table.

BABY BELLS
If the new millennium's preferred telecom provider must offer telephony, cable, and Internet access, then the Bells must play catch-up to AT&T, which is almost there.

TIME WARNER
The media giant is close to finalizing a local phone deal with AT&T and stands to benefit from unwinding strained partnerships with MediaOne in cable and Road Runner.



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