Bell Merger Creates Media Giant

A merger deal worth $33bn was settled yesterday in America between the telephone company Bell Atlantic and the country’s largest cable operator Tele- Communications (TCI). It is the biggest merger in US history and if approved by the government it will create a massive media giant.

The impact on the UK is significant since TCI owns half of Telewest, a UK company with interests in cable franchises covering around 3m homes in areas including London, Bristol and Edinburgh. Telewest controls 70-80% of telephone lines operated by cable companies in Britain; a market already recognised by BT as a potential threat.

TCI also owns United Artists Programming which supplies channels including Bravo and Discovery and gives the the US giant an important US giant an important foothold in the UK & Europe.