Cable Systems

PHILADELPHIA - Comcast Corp. and Time Warner Corp. will divide cable systems in Los Angeles, Dallas, Minneapolis and several other big markets if their bid to buy bankrupt Adelphia Communications Corp. is approved. The proposed swaps are part of the transactions announced yesterday in which Comcast and Time Warner would buy Adelphia Communications for $17.6 billion and divide its 5.3 million subscribers. Systems in Carroll and Frederick counties in Maryland, and in Washington's Virginia suburbs are among those Comcast would get. Adelphia has almost 30,000 cable subscribers in Carroll County, said Carol Shawver, coordinator for the Carroll County Cable Regulatory Commission.

WASHINGTON -- Cable television customers will have to wait a few more months for the government to impose $1 billion in price reductions because the Federal Communications Commission needs more time and money to tackle its own regulations.The FCC had planned to impose new cable rate regulations June 21 that were expected to produce price rollbacks nationwide. But the commission announced yesterday that it would have to delay the rollbacks until after Oct. 1 because Congress had yet to appropriate $12 million for more computers, office space and 240 new lawyers, accountants and other staff to deal with an expected avalanche of paperwork.

NEW YORK -- AT&T Corp., soon to be the largest U.S. cable TV operator, announced yesterday that Leo Hindery, president and chief executive officer of its cable unit, is unexpectedly leaving the company to pursue other interests.Hindery, 51, was president of Tele-Communications Inc., the cable TV company that AT&T acquired for $59.4 billion in March. He is the latest top-level executive to leave AT&T since Chairman and Chief Executive Officer Michael Armstrong joined in November 1997.Hindery's departure comes at a critical time for AT&T, which has bet much of its future on cable systems that will offer phone service, data communications and Internet access as well as television programming.

Channel 20 in Washington - which is not available on cable systems in most of the Baltimore area - is preparing to televise a substantial number of Washington Nationals games, including the team's first game Monday against the Philadelphia Phillies and its home opener April 14 against the Arizona Diamondbacks. Account executives are distributing materials that say "Major League Baseball returns to the nation's capital on UPN20-WDCA" and offer potential customers different levels of sponsorships.

Two major employers in the Baltimore region yesterday notified workers of job-cutting plans that could affect as many as 325 people. Comcast Corp., the region's leading cable television company, will dismiss about 125 workers at its division office in White Marsh - about three-quarters of the office's staff - in the coming months. And Federated Department Stores Inc., which owns Macy's and Hecht's among others, plans in June to shutter a Baltimore distribution center that employs 200 people, though it is still unclear how many employees will lose their jobs or be offered transfers.

Hunt Valley-based Sinclair Broadcast Group and Comcast Corp. are in negotiations involving fees that could affect whether millions of cable viewers can watch popular shows such as American Idol, 24 and America's Top Model on their cable systems. The two sides have until March 10 to reach an agreement. Here is a look at some of the issues: What is at the heart of the dispute? Sinclair wants Comcast to pay retransmission fees to carry its programming on the cable system. Comcast has refused, saying its customers should not have to pay for content that is available for free over the airwaves.

NEW YORK -- Time Warner Inc. was born of debt in 1989.Executives at Time Inc. and Warner Communications Inc. knew their planned merger using stock would be defeated by shareholders.So Time borrowed heavily and acquired Warner in a transaction that didn't require stockholder approval.Since then, borrowing has become a habit.The movie, publishing, music and cable-television company has paid down some debt from time to time by selling stakes in its businesses to other companies. But the total load continues to grow.

WASHINGTON -- The days and nights of free Oprah and Cosby Show could be numbered for cable television viewers if Congress passesa measure allowing broadcasters to charge cable operators for their programming.The cable industry warns that the provision, part of a bill expected to be brought to the Senate floor this month, could raise subscribers' rates by as much as $5 per month.Any proposal to allow cable systems to be charged for receiving network or local broadcast programming "would hit the consumer right in the wallet and give him nothing in return," James P. Mooney, president of the National Cable Television Association, told a House subcommittee last month.

Comcast Corp. said yesterday that its key earnings measure rose 13.5 percent during the second quarter.A successful crackdown on cellular phone fraud and big gains at its QVC cable shopping network led the way.The Philadelphia-based cable company, which operates local systems in Baltimore, Howard and Harford counties, reported net income of $16.8 million, compared with a loss in last year's second quarter.The primary difference was a $40.6 million gain from the initial public offering of Comcast affiliate Teleport Communications Group Inc. in June.

COUDERSPORT, Pa. - Adelphia Communications Corp.'s founding Rigas family agreed yesterday to give up board control and transfer almost $2 billion in assets to the cable-television company, a person familiar with the matter said. The assets will help offset $2.3 billion in company loans to the family that sparked a U.S. Securities and Exchange Commission probe. The Rigases agreed to cede two of their five seats on Adelphia's nine-member board, the person said. Adelphia, facing U.S. grand jury investigations in two states and a possible Nasdaq delisting, still needs $1 billion in financing to avoid a bankruptcy until it can sell assets, the person said.