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Description
Creating the world's largest broadband communications with over 22 million subscribers in US alone, AT&T-Comcast is sending the signals to its competitors. The broadband juggernaut is all set to dictate terms to the industry and reshape it altogether.
Finally after high drama and prolonged negotiations, AT&T Broadband, biggest cable company in the United States has decided to merge with Comcast, the original suitor. Putting down curtains on the suspense as to which company will be finally awarded the AT&T broadband division after its spin-off from the parent company, Comcast emerged as winner. The $72 bn deal, perhaps the second largest ever deal in the broadband market history will create the biggest broadband company, to be called AT&T Comcast Inc. with more than 22 million subscribers and access to over 38 million households across 17 metropolitan cities in the US. The acquisition of AT&T broadband by Comcast is all set to transform the broadband market drastically. The proposed new entity in all probability is all set to offer its services during the second part of 2002.
Comcast has been eyeing the lucrative market of broadband for the last three years. According to analysts, this market is very attractive since it can offer varied services to the customers at one go. Added to this, the convergence of media, telephone and Internet is driving the broadband market. Big players like AOL Time Warner Inc., Microsoft Corp. and the newly born entity are all pursuing different strategies emphasizing either their media holdings, technology or their means of distribution or a combination of each. They all have one common future goal: become an all-in-one network that brings together an array of household appliances including the telephone, the television and personal computer. Though the cost of offering the services has increased for the consumers, they are equally recognizing the need of these vital services which has already become a part of their lives. And sensing this growing demand from the consumers companies are moving fast to capitalize on the huge untapped market potential.