AT&T Corp is looking to return to the local telephone services business in alliance with Time Warner Inc’s cable unit, according to Inside Media. Neither company would comment on the report, but the paper said AT&T may end up taking a stake in Time Warner Cable, currently 75% owned by Time Warner, 25% by US West Inc. AT&T’s regulatory regime bars it from offering local phone service directly, but the deal would likely see the two offering a package that combined local service from Time Warner, and discounted AT&T long distance service.
