AT&T offers concessions to get FCC OK on BellSouth

AT&T OFFERS CONCESSIONS TO GET FCC OK ON BELLSOUTH
[SOURCE: Reuters, AUTHOR: Jeremy Pelofsky]
The FCC has scheduled time on Friday to decide on the pending merger of AT&T and BellSouth. AT&T apparently has offered some concessions to get FCC approval for the $80.6 billion acquisition. FCC Chairman had initially proposed approving the deal with no conditions, according to sources, but later offered one requiring the company to provide competitors access to at least 30 commercial buildings in BellSouth's territory so they can offer service. While there are five FCC commissioners and the Republicans have a 3-2 majority, Republican Robert McDowell has said he does not plan to vote on the deal because he previously worked for a group that represented rivals to AT&T and BellSouth. Chairman Martin could ask the FCC general counsel to allow McDowell to vote by arguing it would benefit the public interest. But for the moment, Chairman Martin has chosen to try to hammer out a compromise with the Democrats and the companies. Issues being debated at the FCC include Internet access, wireless airwaves that BellSouth owns and is using for high-speed Internet service, and prices for wholesale access to the networks by competitors to serve business customers. Analysts at Stifel, Nicolaus & Co. said in a research note to clients that it was unclear whether the agency would vote on Friday and while the Democrats would likely extract some targeted conditions, they would not be overly harsh. "We continue to expect the FCC to approve the current deal with conditions similar to last year's relatively modest ones," it said. "We remain skeptical the Republicans or the companies, which could facilitate a compromise, will agree to sweeping new requirements."
http://today.reuters.com/news/articleinvesting.aspx?type=bondsNews&storyID=2006-10-12T164111Z_01_N12356132_RTRIDST_0_TELECOMS-BELLSOUTH-FCC-UPDA...
http://today.reuters.com/news/articleinvesting.aspx?type=bondsNews&storyID=2006-10-12T150753Z_01_N12298624_RTRIDST_0_TELECOMS-BELLSOUTH-FCC.XML

* Consumer fears could delay AT&T acquisition
FCC Commissioners Michael Copps and Jonathan Adelstein, want to require the new AT&T to: Let consumers subscribe to high-speed Internet service even if they don't have phone service with the company; Lease more lines to local phone and data service providers; and Accept some restrictions against charging higher rates to online content providers who are not affiliated with them.
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