AT&T, the nation's largest long-distance phone company, is acquiring the No. 2 provider of cable TV service, Tele- Communications Inc. (TCI), in a $31-billion deal that represents the most dramatic result so far of the 1996 deregulation of the telecommunications industry.

FCC chairman William E. Kennard has reacted favorably to the proposed acquisition: "These companies bring some synergies that are quite compelling. They're not direct head-to-head competitors, but both of them have said in the past that they want to offer a package of services to consumers. If through the combination they are able to bundle services and be more competitive with the incumbent providers, it's a good thing."

The deal is expected to give AT&T a strong position from which to compete in the local phone service market, as well as to offer customers a range of Internet-based services.

http://www.tci.com/

((c) New York Times)