Consumer groups urge limits on AT&T-BellSouth deal

CONSUMER GROUPS URGE LIMITS ON AT&T-BELLSOUTH DEAL
[SOURCE: Atlanta Journal-Constitution, AUTHOR: Marilyn Geewax]
Consumer advocates and civil libertarians demanded Monday that regulators refrain from approving AT&T's purchase of BellSouth unless the phone companies accept tough restrictions on their $67 billion deal. While the two phone companies want the FCC to move quickly, consumer groups say regulators should not rush to sign off on a combination that could affect consumers for decades. "This merger will haunt the consumer," said Mark Cooper, research director at the Consumers Federation of America. When the combined companies strengthen their grip on the marketplace, he said, "they will use it against the public." Consumer groups belonging to the Competition Coalition called on regulators to impose restrictions on the new telecom giant. For example, they want AT&T to accept rules guaranteeing "net neutrality," meaning the company would have to treat all Internet content in a neutral way. AT&T has expressed interest in charging content providers for speedy delivery of enhanced services, such as video. Consumer groups say that forcing Internet companies to pay "tolls" for premium delivery of their content would hurt young companies trying to compete against established giants. "AT&T's approach to the Internet is one which does not bode well for maintaining the Internet as an avenue of innovation, an avenue of free expression, an avenue of political speech," said Andrew Schwartzman, president of the Media Access Project. The American Civil Liberties Union also is trying to reshape the proposed merger. Barry Steinhardt, director of the ACLU's Technology and Liberty Program, said the FCC should be investigating the phone companies' possible involvement with the National Security Agency, which conducts surveillance of potential terrorist activities. "We believe the FCC has both a statutory and a public interest obligation to investigate whether or not AT&T and BellSouth have been engaging in illegal cooperation with the NSA and spying on Americans," Steinhardt said. "We are very disappointed that the FCC has fallen down in its obligation to conduct this investigation."
http://www.ajc.com/services/content/business/stories/2006/09/25/0925bizb...