10/12/01
1. @Home Stops Taking Orders; Creditors Aim to Stop AT&T Buy
2. AOL & EarthLink Launch Services over Multiple TW Systems
3. U.S. Supreme Court Hears Pole Attachment Case
4. WINfirst Introduces Services in North Sacramento
1. @Home Stops Taking Orders; Creditors Aim to Stop AT&T Buy
@Home advised its affiliates that it would stop taking orders for new service
yesterday at 3:00pm EDT. Existing service has not been interrupted but
subscribers are unable to make changes to their accounts. Affiliates have
started taking orders internally, but the new responsibility already has MSO
install schedules backed up for at least two weeks.
In other news, a committee of five large creditors, appointed by a trustee,
is
attempting to block AT&T's proposed $307 million buyout of @Home's assets.
The committee, comprised of Cisco Systems Capital, MacKay Shields, Lydian
Asset Management, Tickets.Com, and Creedon Capital Management, claims
that bondholders and creditors of the provider were not consulted about the
deal nor did they approve it – a requirement under bankruptcy law. The group
contends that AT&T operated under a conflict of interest when it arranged the
buyout and that its offer does not reflect the value of the company. The
committee suggests @Home may be more suited to pay off its more than $1
billion in debt by either reorganizing operations without the Excite portal,
auctioning off its assets, or allowing more time for other bidders to emerge.
The creditors may be running out of time since @Home's operating cash is
expected to run out within the next few weeks, pressing the bankruptcy court
to quickly approve the initial deal.
@Home
http://www.home.net
AT&T
http://www.att.com
2. AOL & EarthLink Launch Services over Multiple TW Systems
EarthLink and AOL have launched Internet access services over AOL/TW's
cable systems in several markets. Earthlink introduced services yesterday in
Greensboro, N.C. (527,535 HHP), Cincinnati, OH (600,000 HHP), Tampa Bay,
FL (1.4 million HHP), and Raleigh/Durham, N.C. (760,000 HHP). AOL
introduced services in Greensboro and Cincinnati.
According to FTC regulations, AOL/TW is required to provide at least three
competing access providers with access to its systems. Initially, the MSO
had
established agreements with EarthLink, United Online (Juno & NetZero
merger), and High-Speed Access, Inc. (HSA) However, HSA backed out of the
agreement incurring financial problems that led to its exit from the access
market. As a result, AOL/TW has been looking for other providers to fill the
role, and has recently submitted approval to the FTC for Internet Junction to
offer services in central Florida, Connect.com to offer services in New
York, and
South Texas Internet Connections to offer services in Houston, San Antonio,
and Austin.
Time Warner
http://www.timewarner.com
AOL
http://www.aol.com
EarthLink
http://www.earthlink.net
3. U.S. Supreme Court Hears Pole Attachment Case
The U.S. Supreme Court heard oral arguments this week over a decision by the
U.S. Court of Appeals for the 11th Circuit that lifted pole attachment fee
regulations when carrying lines that delivered cable modem services. The
Appeals Court claimed that a 1978 law requiring utility companies to charge
reasonable rates for pole attachments did not apply to cable operators
offering
Internet access because the law exclusively addressed video programming
services. The FCC has argued that amendments in the Telecommunications
Act of 1996 changed the law to pertain to the attachment of wires to the
poles
by cable telecom providers and not the service provided within that wire.
Lawyers from Gulf Power are representing the utes.
Since deregulation, pole attachment fees in some markets have jumped from $7
a year per pole to $38.
A decision is expected next year.
U.S. Supreme Court
http://www.supremecourtus.gov
FCC
http://www.fcc.gov
4. WINfirst Introduces Services in North Sacramento
WINfirst (Western Integrated Networks), an overbuilder, has introduced voice,
video and data services in North Sacramento. An in-home videophone service
is
scheduled to be introduced by the end of the year. The provider is currently
laying cable in Natomas, Arden Park, and Woodlake.
WINfirst
http://www.winfirst.com
© Copyright 2000 Gecko Research & Publishing
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