LOCAL cable operator Nynex CableComms is part of a major new industry group formed yesterday.

Cable & Wireless, the UK telecoms giant, has merged its subsidiary Mercury with Nynex and two other American-owned UK cable operators, Bell Cablemedia and Videotron.

The new company, Cable & Wireless Communications, gives massive industrial clout and offers services from TV to the Internet.

The new company is seen by analysts as a threat to main rival BT.

The deal will create the UK's largest provider of telecommunications, information and entertainment services.

CWC will become a one-stop shop offering an "unparalleled choice" of communication services to UK businesses and about six million homes.

The deal is the first major move by Cable & Wireless (C&W) since its proposed merger with BT collapsed earlier this year.

It follows the appointment of American-born Richard Brown as chief executive.

BT denied the merger would be a threat, saying it already offered a full portfolio of competitive services.

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