AT&T may be in talks with several U.S. cable television companies about investing up to $1 billion in a cable-based Internet access venture that would link Time Warner, Inc. with @Home Corp., according to a report in today's Wall Street Journal.
Time Warner has been discussing merging its Internet access division, Road Runner, with @Home, which is backed by Tele-Communications, Inc., Comcast Corp., Cox Communications, Inc. and Cablevision Systems Corp., according to the report. AT&T is interested in becoming a partner in the venture by contributing its WorldNet Internet service, plus a large amount of cash, the report said. In return, AT&T would receive shares in the cable Internet venture.
AT&T and the cable companies involved could not be reached for comment.
The cable television industry has been increasingly turning its attention to the provision of high-speed Internet access in recent months, as PC-based cable modems and digital set-top boxes capable of transmitting hundreds of channels as well as offering Internet access and interactive services have begun to hit the market.
Computer companies, such as Microsoft Corp., and telecommunications providers also are eager to cash in on the potentially lucrative cable Internet access market in the U.S., where a high percentage of homes are already wired for cable television.
