SBC to Take On Cable with $6B Upgrade

6/23/2004 9:01 AM Eastern

SBC Communications Inc. said it will invest $6 billion in an upgrade to take on the cable industry, AP reported.

The San Antonio-based regional Bell operating company said it will replace copper wiring with fiber optics in neighborhoods across its 13-state local-service territory, which will also enable it to offer faster high-speed-data connections, voice over Internet protocol and other premium products, according to AP.

SBC added that Microsoft Corp. will provide Internet-based software needed for it to provide digital TV.

The telco will begin testing video services in the next three months using the Microsoft system, AP reported.

“It will set the stage for full competition against cable,” chief executive Edward Whitacre said Tuesday at the Supercomm 2004 convention in Chicago, according to AP.


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