Proposed AT&T-BellSouth Merger Could Slow Telecom Bill Debate

[SOURCE: National Journal's Insider Update, AUTHOR: Drew Clark]
The proposed merger agreement between AT&T and BellSouth could slow the push for a telecommunications bill this year -- as the cable industry told Congress that regional Bell operating companies are so big that they need no additional legislation. The National Cable and Telecommunications Association Monday sent a letter to legislators highlighting that a merged AT&T- BellSouth would be larger than the entire cable industry. The merger could put the brakes on a possible overhaul of the 1996 Telecommunications Act, "especially with regard to video franchising," a cable industry source suggested. News of the merger came as key members of the House Energy and Commerce Committee have been negotiating a bill focused largely on granting nationwide franchises to expedite the entry of the Bells into pay video services. AT&T -- along with another Bell, Verizon Communications -- has been actively seeking such legislation. One of the legislators involved in the Energy and Commerce negotiations -- Telecommunications and the Internet Subcommittee ranking member Edward Markey (D-MA) -- said that the AT&T-BellSouth deal deserves close scrutiny. By and large, initial reaction on Capitol Hill to the $67 billion proposed merger -- which would be the fifth largest merger in U.S. history -- ranged from noncommittal to skeptical, as several key players said that they planned to hold hearings on the deal. They include House Judiciary Chairman James Sensenbrenner (R-WI), Senate Antitrust Subcommittee Chairman Mike DeWine (R-OH) and subcommittee ranking member Herb Kohl (D-WI)
http://www.njtelecomupdate.com/lenya/telco/live/tb-LPTS1141679598269.html