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December 1, 1993


By CBR Staff Writer

Major US cable television operators Comcast Corp, Continental Cablevision Inc, Cox Cable Communications, Tele-Communications Inc and Time Warner Entertainment Inc yesterday announced that they have agreed in principle to form a joint venture to develop new telecommunications services using digital video, fibre optic and wireless technologies. The joint venture will establish national US service organisations and local service providers, and intend to seek additional participation and investment by cable operators in the new entities. The aim of the joint venture is to create new telecommunications business lines that are enhanced and differentiated from those currently offered by existing wired or wireless communications providers – potential new business lines include Personal Communications Services, video telephony, energy utility communications and data communications services. The joint venture will also include local business and competitive access services provided through Teleport Communications Group. Ultimately, it looks to offer the evolving services in competition with telephone companies which are expected to develop similar services. The partners note that in many markets across the US, several separately-owned cable companies operate in a single telephone company’s service area, and say their new venture will help them to form of umbrella organisations that provide a competitive area-wide presence for the delivery of the new services. Time Warner also announced it is to become an investor in Teleport Communications.

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