AT&T Seeks Compromise with Regulators on BellSouth Merger

Press Release - 7:55 am on December 29, 2006

U.S. telecom giants, AT&T Inc. and BellSouth Corp., have offered to make a number of new concessions if FCC regulators vote to approve their $84 billion merger agreement.

The companies says they will sell certain wireless spectrum licenses and telephone lines, extend its high-speed internet network in rural areas, and offer better terms to competitors wishing to rent its network facilities to offer their own services.

Perhaps most notably of all, AT&T is pledging to offer unobstructed internet connections to all customers, in accordance with the principle of “net neutrality,” in an attempt to win the support of two Democratic FCC commissioners who are refusing to lend their support to the merger.

“These are very pro-customers concessions that we are making, and hopefully this will get us closure as soon as possible,” commented BellSouth spokesman, Jeff Battcher.

So far, it is unclear whether these concessions will be enough to gain the support of either Jonathan S. Adelstein or Michael J. Copps. The two Democrats are currently in a 2-2 deadlock with Republican commissioners, Kevin Martin and Deborah Taylor Tate. A third Republican commissioner, Robert McDowell is abstaining from the vote due to his previous work with a trade group that opposes the merger.