AT&T/BellSouth Merger Faces Onerous Conditions

AT&T/BELLSOUTH MERGER FACES ONEROUS CONDITIONS
[SOURCE: Financial Times, AUTHOR: Stephanie Kirchgaessner]
AT&T’s $68bn takeover of BellSouth will face a tough political climate in Washington in 2007 when Democrats take control of the Congress, virtually ensuring that the former Ma Bell will have to agree to harsher conditions. The possibility that the telecoms mega-merger would be approved by the Federal Communications Commission before the end of this year appeared to disintegrate on Monday after Robert McDowell, a Republican commissioner at the FCC, said he would abstain from deadlocked negotiations over the transaction at the regulatory agency. The decision marks the beginning of what is likely to be a difficult period for Kevin Martin, FCC chairman and a savvy political operator who has, until now, faced few serious hurdles on his agenda. Among other issues, Mr Martin will probably be forced to defend the FCC’s future decision on the AT&T deal and separate deliberations on media ownership limits before Democratic lawmakers next year. With Commissioner McDowell out of the game, AT&T will be forced to succumb to at least some of the demands of the FCC’s two Democratic commissioners, who are expected to have the backing of the new Democratic majority in the Congress on issues ranging from net neutrality to “special access” price freezes, covering competitors’ access to its network.
http://www.ft.com/cms/s/cff8bf82-8f8d-11db-9ba3-0000779e2340.html
(requires subscription)

BARTON WANTS FCC TO MOVE FORWARD WITH AT&T/BELLSOUTH MERGER
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
Outgoing House Commerce Committee Chairman Joe Barton (R-TX) wants the FCC to get on with approving the AT&T/Bell South merger -- and without any general conditions. In a statement he said he was confident Commissioner Robert McDowell's decision would have been fair, and now that he had decided not to vote on the merger the four commissioners need to put the pedal to the metal. He says the merger will create video and broadband competition and urged the commission to "bring its review to a close rather than delay these consumer benefits."
http://www.broadcastingcable.com/article/CA6401511.html?display=Breaking+News