Oct 11, 2006 10:22 am US/Eastern

 

DOJ Approves AT&T-BellSouth Deal

 

(AP) WASHINGTON The Justice Department approved AT&T's buyout of BellSouth Corp. on Wednesday, clearing a major hurdle for reuniting two modernized parts of the old Ma Bell phone monopoly that the government broke up in 1984.

 

The decision leaves the Federal Communications Commission as the final hurdle for a $78.5 billion deal to create the nation's biggest provider of phone, wireless and broadband Internet services.

 

The FCC is scheduled to vote on the matter Thursday, though there's been speculation the agency may hold off because of political pressures from Congress about the deal's possible impact on market competition.

 

If the deal wins final government approval, the merger would give San Antonio-based AT&T Inc. total control over the nation's largest cellular provider, Cingular Wireless, a joint venture of the two phone companies that serves 57.3 million customers.

 

"After thoroughly investigating AT&T's proposed acquisition of BellSouth, the antitrust division determined that the proposed transaction is not likely to reduce competition substantially," said Assistant Attorney General Thomas O. Barnett, who heads the department's antitrust division.

 

The merger has raised concerns from consumer advocates and federal lawmakers who claim the government is well on its way to reconstituting the old Ma Bell monopoly, which was broken up in 1984 after a lengthy court battle.

 

The House Judiciary Committee's chairman, Rep. James Sensenbrenner, R-Wis., and other members of Congress had asked that the deal not be allowed to go through until details related to two previous telecommunications mergers are settled and other concerns are addressed.

 

The outcome at the FCC was far from certain. Republican Chairman Kevin Martin circulated an order recommending approval of the merger last month and probably will receive support from fellow Republican commissioner Deborah Taylor Tate.

 

However, the two Democrats on the commission, Jonathan Adelstein and Michael Copps, are expected to ask that conditions be placed on the deal.

 

That leaves Robert McDowell, the third Republican on the commission, who before joining the FCC lobbied in favor of competitors to companies like AT&T and BellSouth. McDowell has said he is proceeding as though he is recused from the case.

 

The combination of San Antonio-based AT&T and Atlanta-based BellSouth would create a company of 300,000 employees with operations in 23 states. AT&T estimates that about 10,000 redundant jobs would be phased out over three years.

 

The Justice Department decision came just seven months after AT&T announced its intentions on March 5 to buy BellSouth ? a breakneck pace for a merger of its size and scope.

 

(? 2006 The Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed.)

 

http://cbs4.com/topstories/topstories_story_284073013.html

Now Hellsouth is going to get even more sh*tty.

I still find it hillarious that AT&T sold it's wireless network to Cingular (Bellsouth) and now it is buying it and so much more back. Just 2 years ago, AT&T had fallen to the ranks of the desparate, now they have some questioning monopoly issues.

 

I never liked the anti-trust break up, it should have just been left alone.

Consumers had more control over Ma Bell than the Baby Bells because the Feds got on AT&T if they profited more than what was allowed. It was a very strongly controlled monopoly.

So is the the end of the Bells?

So is the the end of the Bells?

 

 

the baby bells have been pretty much been over for over 5 years, since Southwestern Bell started taking control of everything along with Verizon. The only thing left are those two and the one that is in the Big West, which will be taken over by AT&T at some point, only a matter of time.

 

 

Its really kinda funny if you think about it.

Honestly I think it shows how pro-business the government has become over the last 8-10 years.

 

I mean, have they rejected a SINGLE merger agreement in that period? Not that I can remember.

 

What a joke.

Honestly I think it shows how pro-business the government has become over the last 8-10 years.

 

I mean, have they rejected a SINGLE merger agreement in that period? Not that I can remember.

 

What a joke.

 

 

big business = big money in Congress' pocket.

 

 

little business aka the everyday man big money in Congress' pocket.

 

 

Face it...by and large all the majority of Congress cares about is their bank account, no matter what front they may put on often times.

I think one of the few mergers rejected, or at least sued by the DOJ, was EchoStar and DirecTV.