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TCI ANNOUNCES ADDITIONAL STEPS TO BRING ITS CUSTOMERS MORE CHOICE, CONTROL OVER CABLE TV SERVICE

 ENGLEWOOD, Colo., Jan. 12 /PRNewswire/ -- Tele-Communications, Inc. (TCI) (NASDAQ: TCOMA), today announced additional steps to bring its customers more choice and more control over their cable television service.
 The most immediate steps also reflect the company's intent to meet and, in some cases, exceed the expectations of Congress when it passed the Cable Act of 1992. The longer range steps begin to implement the company's digital compression plans announced last month.
 Brendan Clouston, TCI's chief operating officer, said, "Both our own research and last year's passage of the Cable Act tell us that our customers want more choice and more control over their viewing options. Our response will be to press ahead aggressively with our introduction of compressed digital and related technologies while going the extra mile to comply with the 1992 act -- exceeding in some cases the expectations of Congress."
 Barry Marshall, chief operating officer of TCI Cable Management Corporation, said, "All levels of our company are expending a great deal of effort to ensure that we are ready to best serve our customers in future operating environments. Most immediately, there are a number of operational and policy changes we are making that will benefit our customers." These changes include:
 -- 1. As of April 1, 1993, no TCI customer taking basic cable will be required to "buy through" any additional levels of cable service in order to take premium or pay-per-view services. In isolated cases one or more pay services may not be immediately available. The 1992 act gave cable companies 10 years to comply with this "no buy through" requirement in non-addressable systems.
 -- 2. Regarding the transmission content and "must carry" provisions of the 1992 act, TCI is launching an effort to reduce the possibility of confrontation and disruption of broadcast service to its customers, should those provisions survive legal challenge. The company has already begun discussions with one national broadcasting network and, starting this month, the company will initiate contracts with most of the local broadcasters carried on its cable systems. TCI will not negotiate for retransmission consent payments under the 1992 act as it is currently structured, but carriage agreements and other items may eventually be subject to negotiation.
 -- 3. As suggested in the 1992 Cable Act, all TCI systems will create a reasonably priced entry-level basic cable service by April 1, 1993. The company will adopt the industry standard basic model, with an entry-level tier consisting primarily of broadcast stations, local access and PEG channels. Prices for the broadcast basic tier will vary from system to system, but generally they will be around $10. Broadcast basic customers will be able to purchase premium, PPV or other a la carte services without "buying through" expanded basic, as noted above.
 -- 4. TCI intends to announce shortly a comprehensive effort, with one or more strategic partners, to develop standards for compatibility of cable service and home electronics equipment. This effort will address, among other things, the concern Congress expressed in the 1992 act about compatibility between cable encryption equipment and advanced television picture generation and display features. The act contemplates FCC regulatory action in this area next year, but this effort will start shortly.
 -- 5. TCI intends to exceed the customer service requirements that ultimately will be issued by the FCC. Customer service improvements will remain a primary focus of the company.
 Locally, TCI of Pennsylvania, Inc., said it is developing a service reconfiguration plan that will reflect the approach introduced today by its parent company. TCI of Pennsylvania said it expects to finalize pricing and service level composition in February and will provide complete details at that time to customers, municipalities and media.
 Clouston added, "There are also a number of longer range announcements we are making today which follow up on our digital compression plans announced last month. These, too, will be important components of our ultimate vision, which is to provide our customers as many video, data and other TV options as the marketplace commands and to give our customers easy-to-use control over the options they choose to take and pay for." These steps include:
 -- 1. Within four years, TCI will be serving over 90 percent of its customers with state-of-the-art fiber optic cable systems. The systems, which facilitate high quality digital transmission of TV signals, feature optical fiber to neighborhood nodes with coaxial cable distribution downstream from that point. TCI's capital budget will be substantially increased for this purpose. TCI's captial budget for 1992 was around $450 million.
 -- 2. TCI has established a project management team under the direction of Mark Hess, formerly state manager from New York, to complete detailed planning for deployment of digital compression technology throughout its cable systems, to supervise initial deployment and to begin planning the operational systems that will be used on TCI's cable systems of the 21st century.
 -- 3. In December of last year, TCI announced that it would establish a national center to uplink, encrypt and authorize the reception of compressed digital television services. The company has decided to locate that facility in the Denver metropolitan area. Ultimately, the facility will employ several hundred people.
 On Dec. 2, 1992, TCI announced that it would begin rolling oution ratios and ultimately could provide over 500 channels of advanced television options to TCI customers.
 Tele-Communications, Inc., is traded in the NASDAQ market with class A common stock and class B common stock trading separately under symbols TCOMA and TCOMB, respectively. In addition, the company's liquid yield option notes due 2008 are also traded in the NASDAQ market under the symbol TCOMG.
 -0- 1/12/93
 /CONTACT: Lela Cocoros, 303-267-5273, or Evan Pattak, 412-771-8700, ext. 1440, both of TCI/
 (TCOM)


CO: Tele-Communications, Inc.; TCI of Pennsylvania, Inc. ST: Pennsylvania, Colorado IN: TLS SU:

CD-JS -- PG005 -- 4064 01/12/93 13:06 EST
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Date:Jan 12, 1993
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