FCC Says AT&T; Failed to Clarify Plans on Conforming to Cable Cap

Communications regulators said Monday that AT&T; failed to give them an “irrevocable commitment” for how the company would come into compliance with federal limits on the reach that one cable company can have.

AT&T;, the nation’s No. 1 cable operator, was required to tell the government last week how it would conform to rules that restrict the number of satellite and cable subscribers a single company can control to 30% of the national total. Because of its summer merger with cable giant MediaOne, AT&T; is now about 42% of the total.

To meet a Federal Communications Commission deadline, AT&T; said Friday that it would spin off Liberty Media Group--one of its programming interests--to bring itself under the national cap.

But the company added that this was contingent on a favorable tax ruling, which it is now seeking.

The commission said this contingency provision did not represent a firm commitment to shed Liberty.

The FCC said the only clear commitment by the company was a pledge that if it could not complete its divestiture of Liberty and other steps by May, it would shed its 25% stake in Time Warner Entertainment or place that stake in an irrevocable trust.

AT&T; spokeswoman Claudia Jones said the company has every intention of complying with the conditions of its MediaOne merger.