MediaOne Gets Two Time Warner Mich. Systems

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MediaOne said last week that it will acquire 30,000 cable
subscribers in the Detroit area from Time Warner Cable.

The Time Warner operations included in the sale are
suburban systems in Dearborn and Wayne, Mich., which serve 25,000 and 5,000 subscribers,
respectively.

Financial terms were not disclosed. However, with such
system sales running at $2,000 per subscriber, the transaction is expected to be valued at
about $60 million.

"These cities fit nicely with the other areas that we
serve, where we are offering advanced telecommunications services like high-speed Internet
access and digital telephone," said MediaOne vice president Don Schena, in a prepared
statement.

The deal is expected to close later this year.

Once completed, MediaOne will have 310,000 subscribers in
Detroit, making it the second-largest MSO in that metropolitan area and the third-largest
in Michigan.

With systems that have already been rebuilt to 750
megahertz, Dearborn and Wayne are candidates for deployment of MediaOne Express, a
high-speed Internet-access service that currently passes 52,000 area households, MediaOne
spokesman Dave Wood said.

They're also in line to receive MediaOne Digital, a
new, 110-channel programming package that the company has rolled out in the nearby
communities of Plymouth, Canton and Northville.

No timetable has been set for deployment of new services in
Dearborn and Wayne, Wood said.

In Wayne, a community of 17,000 households, MediaOne will
lock horns with Ameritech New Media, which is currently offering its Americast programming
package to the town's 20,000 residents.

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