AT&T ASKS FCC TO SUSPEND CABLE DIVESTITURE DEADLINES
AT&T urged FCC to suspend its deadlines for MSO to shed key cable assets to comply with agency’s MediaOne order last year, following March 2 U.S. Appeals Court, D.C., decision striking down agency’s cable ownership rules (CD March 5 p1). In meeting with members of FCC’s Office of Gen. Counsel and Cable Bureau Thurs., AT&T officials and outside attorneys suggested that Commission “suspend the deadlines for AT&T’s compliance steps pending further action by the Commission in light of the court’s decision.” Request was revealed in brief ex parte letter to FCC released Mon. by AT&T, which now exceeds 30% ownership cap because of MediaOne deal.
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Move by AT&T came as it faced May 19 deadline to sell its 25.5% stake in Time Warner Entertainment (TWE), spin off Liberty Media Group and other programming interests or shed cable systems with more than 9 million subscribers. Under FCC’s order approving AT&T’s $44 billion purchase of MediaOne last June, company must tell Commission whether it can comply with order by March 20. AT&T has been seeking to sell its TWE holding back to AOL Time Warner and spin off Liberty Media but both strategies have run into obstacles, casting doubt on its ability to meet those deadlines.
AT&T’s move also came as FCC commissioners and staff continued to grapple with their response to appeals court ruling declaring agency’s ownership cap to be unconstitutional. In last few days, FCC Chmn. Powell has said court ruling could lead to reconsideration of Commission’s requirement that AT&T sell key cable assets while Comr. Furchtgott-Roth has recommended that agency suspend its compliance deadlines and consider dropping its conditions (CD March 12 p2). Furchtgott-Roth also said all 4 commissioners’ staffs, Office of Gen. Counsel and Cable Bureau were examining issue.
Cable Bureau spokeswoman declined comment on AT&T’s request. AT&T spokesman declined to elaborate on ex parte filing.