Indirect involvement: Did AT&T spur Associated buy?

Liberty Media's $3 billion acquisition of The Associated Group last week provides an immediate entry point into broadband data for the cable and programming entity, which could ultimately add strength to the local effort of Liberty parent AT&T.

The morsel of the deal is a 41% stake in Teligent, the broadband wireless operator led by former AT&T executive Alex Mandl. Teligent, one of Associated's most significant holdings, already has operational broadband wireless access networks in 27 markets.

"Liberty Media is really focusing on the need for broadband development, especially in the last-mile environment," Mandl said. "That dovetails with the network capabilities we're developing."

Liberty, a subsidiary of AT&T after AT&T's acquisition of Tele-Communications Inc., operates as an independent unit with separate management. Still, one analyst believes the company's newfound interest in Teligent could help propel AT&T's local network momentum.

"AT&T has been very frustrated about getting access," said Andrew Cole, a principal with Renaissance Worldwide. "Teligent is a two-way broadband technology and has proved itself. It has caught the attention of the major telcos."

Moreover, Cole said AT&T's cable acquisitions are a winding gravel road compared with the paved straightaway Teligent provides.

Cole predicted that Teligent's "very able management team," including Mandl, will continue to control the company's destiny while benefiting from their new connection to AT&T. "The AT&T brand will be a significant boost for them ultimately," he said.

Mandl acknowledged that Liberty's stake will give it influence on the board of directors, but downplayed the impact it will have on Teligent's overall strategy.

"Anyone with 40% ownership has some say in the future and direction of the company, but it's not going to change anything about what Teligent's doing," Mandl said. "Their contribution as an investor and partner might just help us position ourselves quicker and help us with some partnership ideas."

AT&T will encourage the development of Teligent's consumer market and larger companies, expanding on the company's current market of small and medium-sized businesses, Cole said. He predicted AT&T's "mammoth" sales machine will prove to be a huge benefit to Teligent in this effort. He also predicted a WinStar acquisition in the near future.

The acquisition of Associated also gives Liberty Media the wireless location system developer True Position, an interest in a Mexican cellular telephone company and five radio stations.

As part of a new strategic alliance, Primus Telecommunications Group will buy AT&T Canada and ACC Corp.'s residential long-distance customers and ACC's Internet customers. The cash and note deal, valued at about $39 million, includes 450,000 customers.