The swaps are designed to improve each company s geographic coverage by better clustering its systems. This transaction makes strategic sense for both companies.
Geographic clustering enables more effective telephony competition.
This is a terrific outcome for Comcast shareholders. Through this transaction, Comcast firmly establishes its leadership role in the industry by becoming the third-largest cable company, with more than 8 million subscribers. In addition to these valuable cable assets, this agreement greatly accelerates our entrance into telephony and will enable us to more quickly create and provide important new products to our customers. This is a different outcome than our MediaOne proposal, but it is an elegant win-win result. Except for any portion of the swap transactions paid in cash or in certain other equity securities, each of these transactions is expected to be concluded on a tax-free basis.