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Cox Communications, Inc., the Atlanta-based cable company that has diversified into a variety of industries, may turn out to be the most successful cable television company to enter the telecommunications market.
In the wake of CEO John Malone's announcement that Tele-Communications Inc., Englewood, Colo., would slow down its invasion of the telephony world to ward off competition in its core cable business, Cox has emerged as the cable company to beat when it comes to telecommunications.
"I think they have the long-term, disciplined approach to the businesses that other cable companies who are more interested in short-term financial gains do not have," said Frank Plumbley, a vice president at Standard & Poor's Inc., the New York City bond rating agency.
"I think this year we are seeing convergence," Mr. Plumbley said. "The cable companies are getting out of telecommunications and the telephone companies are getting out of video. That to me is convergence."
Mr. Plumbley noted that several efforts have yet to yield significant returns and are focused on a single offering, such as Internet access or telephony services. Time Warner Inc.'s Orlando, Fla., foray into the local telephone market has not produced any success or generated any revenue to date. Continental Cablevision Inc. has had some well-publicized announcements of high-speed Internet access services in the Boston and McLean, Va., areas, and Comcast Corp. seems to be confining itself to wireless networks involving Sprint Spectrum.
Cox, on the other hand, has efforts afoot to develop both voice telephony and data-access services. The cable company, also a member of the Sprint PCS partnership, already offers Internet high-speed access service and is developing local telephone operations.
Cox's commitment...