Word: bellsing
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Until recently, many thought that cable operators had the advantage, at least in the competition to wire the country for two-way TV. But now, as Congress considers a sweeping deregulation bill that would give cable and phone companies broad latitude to invade each other's territory, it is obvious...
And why not? The Bells have phone lines running to virtually every house and workplace in America, along with the high-speed switches to route complex signals among millions of users and keep track of the billing. Moreover, new technology has created the ability to translate all audio and video...
That's why the Bells have been going Hollywood. Three weeks ago, the Walt Disney Co., whose chairman, Michael Eisner, had until recently seemed to disdain two-way TV, agreed to team up with Ameritech, BellSouth and Southwestern Bell to develop and distribute movies, games and other programs to home...
This drive for two-way TV also helps explain the Bells' growing appetite for acquiring cable operations. In July, US West agreed to pay $1.2 billion for two Atlanta cable systems over which it plans to provide interactive-TV service. Among other deals, Texas-based Southwestern Bell reached halfway across...
Whatever benefits the telecommunications war yields consumers, it is financially no-contest between the telephone and cable combatants. Thanks to their local phone monopolies, each Baby Bell rakes in more revenues in a year than does the entire cable-TV industry. That, plus the phone companies' long experience with two...