Printer Friendly

SOUTHWESTERN BELL CORPORATION AND COX CABLE COMMUNICATIONS ANNOUNCE MEMORANDUM OF UNDERSTANDING FOR U.K. CABLE

 LONDON, March 2 /PRNewswire/ -- Southwestern Bell Corporation (NYSE: SBC) and Cox Cable Communications today announced they have signed a memorandum of understanding calling for the two companies to create a partnership in both the cable television and telephony businesses in the United Kingdom.
 The memorandum calls for Cox to hold an initial 25 percent interest in the U.K. franchised cable television/telephony operations currently owned and operated by Southwestern Bell, with operations to step up its ownership stake. Under terms of the memorandum, Cox will integrate senior operating, engineering and marketing personnel with current Southwestern Bell personnel in the U.K.
 The memorandum provides a basis for negotiating a final agreement, which the companies expect to be completed in the first quarter. Financial terms included in the memorandum were not disclosed.
 Southwestern Bell is one of the top three cable television providers in the U.K., with franchises covering 1.2 million homes.
 "This is a unique and exciting opportunity to add value to an already strong U.K. operation that is growing rapidly and serving customers well," said Edward E. Whitacre Jr., chairman and chief executive officer of Southwestern Bell Corporation.
 "Southwestern Bell has high standards when entering into partnerships and joint ventures," Whitacre continued. "Cox Cable more than meets those standards. It has an outstanding reputation for quality service and innovation, and it is highly respected in the cable industry for excellence in the areas of technology, programming and marketing. We are confident this action will help serve customers and provide increased value to our long-term investment in U.K. cable."
 James O. Robbins, president of Cox Cable, said: "We believe the United Kingdom is the 'freest' competitive telecommunications marketplace in the world today. It is the only place where both telephone and cable television services can be delivered under the same regulatory and technical umbrella."
 Robbins continued: "As we look to future plentiful and diverse communications opportunities, strategic alliances with experienced, quality companies such as Southwestern Bell make sense for us. We are committed to exploring all options such alliances may offer."
 Southwestern Bell owns and operates combined cable/telephony businesses in the Northwest and Midlands areas of the United Kingdom -- near Liverpool and Birmingham -- through its subsidiary Southwestern Bell International Holdings, Ltd. The company's plant current passes about 245,000 of the 1.2 million homes in these franchise territories with a penetration rate of almost 23 percent.
 In addition, Southwestern Bell International Holdings is a partner in U.K. basic cable programming ventures, such as CPPI and The Parliament Channel.
 Michael Turner, president of Southwestern Bell International Holdings, Ltd., in London, said, "Cox's entry into the U.K. market with Southwestern Bell International will strengthen our commitment to grow the telecommunications and entertainment industries here."
 Barry R. Elson, senior vice president of operations for Cox Cable with responsibility for international operations, said: "Cox believes that cable, utilizing fiber optics and digital compression, is the best technology for the future to meet expanding consumer and business desires for more integrated voice, video, data and interactive services. We are excited about utilizing this technological platform with Southwestern Bell in the United Kingdom."
 Cox Cable Communications is a division of Atlanta-based Cox Enterprises, Inc., a nearly 100-year-old multi-media company, which includes 17 daily newspapers, 24 cable television systems, seven television stations and 13 radio stations. A fourth division, Manheim Auctions, is the world's largest operator of automobile auctions. Under terms of this memorandum, Cox Cable will conduct business through a subsidiary to be named Cox UK Communications.
 In the United States, Cox serves more than 1.7 million customers with traditional cable television services and also operates fiber optic communications networks in many systems for the purpose of providing business and long distance telephone access services. Internationally, Cox has a 50 percent interest in STOFA AG, a Danish cable and MATV operating company, along with a 35 percent interest in UK Gold, an entertainment channel featuring classic BBC Enterprises and Thames Television programming.
 Southwestern Bell Corporation, based in San Antonio, Texas, is an international communications corporation with 1 million shareowners.es a varie ty f products and services through its principal subsidiaries, including Southwestern Bell Telephone Company, Southwestern Bell Yellow Pages, Southwestern Bell Mobile Systems, Southwestern Bell Telecom, and Southwestern Bell International Holdings.
 In addition to its U.K. cable television operations, Southwestern Bell International Holdings is part owner of Golden Channels Ltd., which provides cable television services in Israel. Southwestern Bell International Holdings's other interests include: a 10 percent equity stake in Telmex, Mexico's national telecommunications company; Southwestern Bell Telecom (U.K.) Ltd., which markets residential and business telecommunications equipment in the United Kingdom and selected other international markets; and Pacific Access, a joint venture with four other partners to publish telephone directories throughout Australia.
 -0- 3/2/93
 /CONTACT: David Andersen, 011-44-71-831-6262 (U.K.), or Ellen East, 404-843-5854, both of Cox Cable Communications; or David Martin of Southwestern Bell Corporation, 210-351-2120/
 (SBC)


CO: Southwestern Bell Corporation; Cox Cable Communications ST: Texas, Georgia IN: TLS SU:

BR-BN -- AT005 -- 1848 03/02/93 10:14 EST
COPYRIGHT 1993 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1993 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Mar 2, 1993
Words:849
Previous Article:SAFEWAY ANNOUNCES TENTATIVE AGREEMENT WITH ALBERTA UNIONS
Next Article:TRANZONIC DECLARES DIVIDENDS ON CLASS A COMMON AND CLASS B COMMON
Topics:


Related Articles
SOUTHWESTERN BELL CORP. REPORTS INCREASED FIRST QUARTER EARNINGS BEFORE EXTRAORDINARY ITEMS, ACCOUNTING CHANGES
SOUTHWESTERN BELL CORPORATION AND COX CABLE COMMUNICATIONS FINALIZE U.K. PARTNERSHIP AGREEMENT
SOUTHWESTERN BELL CORPORATION CALLS OFF PENDING CABLE PARTNERSHIP
SOUTHWESTERN BELL, MICROSOFT & LOCKHEED WORKING TOGETHER ON VIDEO AND INTERACTIVE SERVICES PROJECT
MULTI-MILLION DOLLAR CONTRACT AWARDED TO CHEROKEE NATION INDUSTRIES
CSG SYSTEMS TO PROVIDE CUSTOMER MANAGEMENT SOLUTION FOR SBC COMMUNICATIONS' VIDEO DELIVERY INITIATIVES
SOUTHWESTERN BELL AND TIME WARNER COMMUNICATIONS OF AUSTIN, L.P. SIGN AGREEMENT TO INTERCONNECT NETWORKS
Southwestern Bell And U.S. Long Distance Sign First Five-State Interconnection Pact
Harris Awarded Network Management System Contract by Cox Communications, Inc.
SBC Communications to Participate in Developing Undersea Fiber-Optic Cable Linking U.S. and China

Terms of use | Copyright © 2017 Farlex, Inc. | Feedback | For webmasters