7-Dec-99

AT&T To Share Cable Access

Under pressure from consumer groups and government regulators, AT&T plans to allow rival Internet service providers use its high-speed lines. AT&T confirmed Monday that it has struck a deal with MindSpring Enterprises and sent a letter to the FCC stating its commitment to a more open policy regarding access to AT&T's cable lines. AT&T said it will not renew its exclusive commitment with Excite@Home, which requires AT&T cable customers to buy high-speed Internet access through Excite@Home, a company partially owned by AT&T. The AT&T-Excite@Home contract expires in June 2002. Instead, AT&T said it will negotiate contracts with any willing Internet service provider interested in a shared-access arrangement. AT&T CEO C. Michael Armstrong says the decision was ""not necessarily out of any fear of regulation ... but rather because it's good business for AT&T."" The concession is a dramatic reversal from AT&Tís previous stance that it would be too costly and technically unfeasible to open up its cable network ñ the nationís largest ñ to rival companies seeking to connect consumers faster to the booming Internet.