AT&T/BellSouth Deal Could Open Telecom Merger Floodgates

6:30 am on March 7, 2006 | Category: Business, Corporate, Telecom Services

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AT&T’s recent merger deal with BellSouth has sparked a wave of speculation about other telecom and cable companies rushing to consolidate.

America’s #2 telephone carrier, Verizon Communications, will be most affected if the merger goes through, and could be spurred to swallow some of its smaller regional rivals. Companies in related industries, such as Time Warner Cable, might also have the same instinctual reaction.

There is no concern, of course, that if such a trend of consolidation were to take affect, competition could be damaged throughout the telecommunications industry. That possibility is something that the FCC and Department of Justice will likely consider when deciding the fate of the BellSouth/AT&T merger.

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    Edited by Jeremy Maddock