AT&T may face new regulations if Democrats win in November

With deep ties to Republicans, the Dallas-based telecom giant faces potentially unwelcome regulations if Democrats boost their majority in Congress and Sen Barack Obama (D-IL) wins the presidency. From reforming telephone subsidies to guaranteeing an "open" Internet, Democrats favor many ideas opposed by AT&T. The biggest concern is network neutrality, a notion championed by consumer groups. A network neutrality law would impose strict rules on how companies manage traffic on their networks. AT&T says the most threatening legislation would force it to offer free services marketed by competitors such as Google. The company faces other policy wars with its usual competitors: cable, wireless and technology companies, all using legislation and regulation to gain an advantage in the ever-changing world of telecommunications. AT&T, which spent $17.1 million on lobbying in 2007, is trying to shape an overhaul of telephone subsidies and access charges - especially as the company continues to lose millions of landline customers every year.