| Short Term Debt KILLS AT&T Corp. would have done fine with the purchase of TCI. It's the purchase of MediaOne Group that forced them into the spinoffs. AT&T Corp. wireline business was posting solid but declining profits from competition in the said business. AT&T Wireless as doing very well with the highest revenue per subscriber ratios in the country. with MediaOne came the debt, much of which was short term (a stipulation of the buyout by creditors). AT&T miss calculated and could not handle the short term debt and needed to find a way to deal with it, first the thought of tracking stock, then a spin off. That's what was taking much of the revenue from capital reinvestment.
If AT&T has not purchased MediaOne Group, AT&T Broadband might have been here as the decendant of TCI.
-Vincent |
