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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
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FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
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Date of Report (Date of
earliest event reported): October 27, 1997
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OPTEL, INC.
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(Exact name of registrant as specified in its charter)
Delaware 95-4495524
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(State or other jurisdiction (I.R.S. Employer Identification
of incorporation or organization) Number)
333-24881
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(Commission File Number)
1111 West Mockingbird Lane, Suite 1000, Dallas, Texas 75247
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (214) 634-3800
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ITEM 5. OTHER MATERIALLY IMPORTANT EVENTS.
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On October 27, 1997, the Registrant issued the press releases attached
hereto as Exhibit "A" announcing that the Registrant has completed its purchase
from Phonoscope Ltd. and its affiliates of the residential cable television
business and associated fiber optic network of Phonoscope in the Houston - Clear
Lake, Texas area for a purchase price of $36.5 million.
ITEM 7. EXHIBITS.
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Press Releases, dated October 27, 1997.
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SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
Date: October 29, 1997
OPTEL, INC.
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(Registrant)
By: /s/ MICHAEL E. KATZENSTEIN
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Name: Michael E. Katzenstein
Title: Vice President and General Counsel
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EXHIBIT INDEX
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Exhibit
No. Description Page No.
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20 Press Releases, dated October 27, 1997
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OPTEL ACQUIRES RESIDENTIAL CABLE OPERATIONS
OF PHONOSCOPE IN HOUSTON AND CLEAR LAKE
HOUSTON (October 27, 1997)-OpTel, Inc. and Phonoscope, Ltd. announced today the
completion of the previously announced sale of Phonoscope's residential cable
operations in Houston and Clear Lake, along with the associated fiber optic
network, to OpTel. The acquisition adds approximately 34,000 additional
residential cable television subscribers to OpTel's existing customer base in
Houston and the surrounding area.
Phonoscope will remain Houston's leading provider of telecommunications services
and cable TV to area businesses. Phonoscope will continue to operate its
extensive fiber optic network that encompasses the Greater Houston area. The
Houston-based company has been providing these services to companies in the
Houston area since 1953, and currently offers leased fiber networks, video
conferencing, high speed Internet and intranet systems, distance learning, and
custom satellite uplinks and downlinks.
OpTel is the leading private provider of cable TV and telephone services to the
multi-family housing industry in the United States. In Houston, it provides
cable television, local and long distance telephone and other network services.
OpTel recently commenced operating a central office telephone switch in Houston
and competes directly with the incumbent telephone companies.
Louis Brunel, President and Chief Executive Officer of OpTel, stated, "We are
very pleased to have concluded this transaction. The purchase significantly
increases our presence in the important Houston market as we advance our
telecommunications strategy. The addition of Phonoscope's residential cable
operations reinforces OpTel's position as the leading private cable operator in
the country." OpTel now serves more than 1,000 multi-family properties across
the United States. Units under contract for service are now approximately
400,000.
Lee Cook, Chairman and founder of Phonoscope, said, "This sale will allow
Phonoscope to concentrate and focus on the main core of our business, which is
to revolutionize telecommunications, such as its goal to develop desktop video
and data communications for financial institutions and the corporate world." Mr.
Cook noted that OpTel, as the private cable industry leader and having a major
presence in Houston, was the logical buyer for the Phonoscope residential cable
business.
OpTel is the largest provider of private cable television services to residents
of multi-dwelling unit ("MDU") developments in the United States and is
expanding the range of telecommunications services it offers to MDU residents
principally under long-term contracts with owners of MDU's in nine major cities
(Houston, Dallas/Fort Worth, San Diego, Phoenix, Chicago, Denver, San Francisco,
Los Angeles and Miami/Ft. Lauderdale). OpTel is majority owned by Le Groupe
Videotron Ltee, owner of the second largest cable television operator in Canada.
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Better Connected To The Future(TM)
OPTEL
Video . Voice . Data
OPTEL COMPLETES PHONOSCOPE ACQUISITION
DALLAS (OCTOBER 28, 1997)-OpTel, the leading private provider of cable TV and
telephone services to the multi-family housing industry, announced that it
completed its purchase of the Phonoscope residential cable television and
associated fiber optic network in the Houston area yesterday. The purchase price
was $36.5 million.
The acquired operations serve approximately 34,000 subscribers.
OpTel now serves more than 1,000 multi family properties across the United
States. The acquisition increases its units under contract for service to
approximately 400,000.
The Phonoscope acquisition will increase the range for OpTel's services in
Houston. OpTel currently provides local and long distance telephone services as
a shared tenant services operator in six major markets. OpTel recently commenced
operating a central office telephone switch in Houston where it now provides
local and long distance telephone services as a residential Competitive Local
Exchange Carrier ("CLEC").
Louis Brunel, President and Chief Executive Officer of OpTel, stated "We are
very pleased to have concluded this transaction. It reinforces OpTel's position
as the leading private cable operator in the country and in Houston in
particular." He noted that OpTel now has a market share of over 45% of the
multi-dwelling unit ("MDU") properties over 150 units in that city.
OpTel is the largest provider of private cable television services to residents
of MDU developments in the United States and a leading residential CLEC serving
MDU residents. The Company provides cable television services and (in certain
markets) telecommunications services, to MDU residents principally under long
term contracts with owners of MDU's in nine major cities (Houston, Dallas-Fort
Worth, San Diego, Phoenix, Chicago, Denver, San Francisco, Los Angeles and Miami
- - Ft. Lauderdale). OpTel is majority owned by Le Groupe Videotron Ltee, owner of
the second largest cable television operator in Canada.
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For further information, please contact:
Richard Alden
Treasurer
214-879-8257
