Telecom megamerger

AT&T's announcement today to buy Tele-Communications Incorporated is another tangible sign of PC-TV convergence. The companies aim to create a "one-stop" shop for cable television, phone, and Internet access for consumers, perhaps controlled from a next-generation set-top TV box. They face intense competition, however.

AT&T buys TCI in $48 billion deal AT&T has agreed to acquire Tele-Communications Inc. in an all-stock deal valued at about $48 billion. Buy wins AT&T stake in @Home The alliance is expected to play a pivotal role in AT&T's strategy to expand its Net access and provide local phone service via cable. AT&T-TCI merger faces hurdles Regulators are likely to closely scrutinize the buyout, and both telco and cable TV competitors may raise objections that the merger is anticompetitive.