Time Warner Communications Inc has decided to favour AT&T Corp with its switch and networking business, signing a broad five-year agreement with AT&T Network Systems to make it the primary supplier and systems integrator of network Synchronous Optical Network and telephone switches from the 5ESS – 2000 family: the cable company is gearing up to compete in local telephony with Rochester Telephone Corp and Rochester is where the first switch will go; exchanges will then be installed in about 25 other cities where Time Warner Cable has major cable operations as soon as regulations permit and the company is able to achieve interconnection agreements with other local telephone companies along the lines of the pact with Rochester Telephone.