AT&T is to merge with US cable giant Tele-Communications Inc (TCI) in a deal worth $48 billion (#28.7 billion) in stock. The merger will create a new AT&T subsidiary, AT&T Consumer Services, made up of AT&T's existing consumer long distance, wireless and Internet services, and TCI's cable, telecommunications and high-speed Internet access services. AT&T's chairman, Michael Armstrong, said that the new company would offer integrated communications, Ecommerce and video entertainment servies, and plans to upgrade its US cable network infrastructure. Analysts have predicted this will boost Ecommerce by creating a huge market made up of a third of the US population with broadband cable access.
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