ISU not affected by TCI, AT&T merger this year
July 20, 1998
Many questions about costs, new programs and the companies’ general plans for the future have been raised since AT&T announced its definitive merger with Tele-Communications Inc. (TCI) on June 24.
C. Michael Armstrong, chairman and chief executive officer of AT&T, said the merger is a good move.
“Through its own systems and in partnership with affiliates, AT&T Consumer Services will bring to people’s homes the first fully integrated package of communications, electronic commerce and video entertainment services,” Armstrong said in a press release.
According to the AT&T Web site, immediately following the merger, AT&T will combine its current consumer long-distance, wireless and Internet services units with TCI’s cable, telecommunications and high-speed Internet businesses to create a new subsidiary — AT&T Consumer Services.
LaRae Marsik, director of media relations for TCI, said it will take six to nine months for the merger to be complete, and that until then the companies will be known under a working name — AT&T Consumer Services Company.
Marsik said both companies will continue to improve service and products available.
She said the companies merged because they want to “advance as a whole,” as a host of new services and to “offer more choice and products for customers.”
Marsik said the AT&T name will add strength to and advance TCI, and the merger will help both companies compete with the “increasingly competitive market of video and non-video services,” including home satellite services.
AT&T Consumer Services will provide the broadest set of consumer communications services — including local, long distance, wireless and international communications, cable television, dial-up and high-speed Internet access services, according to the AT&T Web site.
AT&T Consumer Services intends to significantly accelerate the upgrading of its cable infrastructure, enabling it to begin providing digital telephony and data services to consumers by the end of 1999, in addition to digital video services.
Marsik said “it’s too early to say” whether costs will be affected because new rates require complex calculations and decisions made on local scales.
“No one will know for months,” Marsik said.
It seems costs and services in Ames and at Iowa State will remain unaffected.
Robert Pink, associate director of telecommunications at ISU, said the merger will not affect local or long distance service at ISU “whatsoever.”
He said ISU formerly used AT&T’s service but does not use it anymore.
Jason Minion, help room consultant in Durham Center, said students’ Internet access will not be affected unless students choose to use AT&T to connect to Project Vincent.
Kathy Wacker, residence halls program coordinator, said the merger’s effect on cable services in ISU residence halls has not been discussed to her knowledge.
Marsik said one of the most popular questions asked of TCI personnel is if the company will now offer a la carte options for its customers.
She said TCI does not plan to offer such options because channels would have to individually advertise their stations instead of being part of a cable marketing package.
“Costs would be prohibitively expensive” if TCI offered an a la carte option, Marsik said.