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Department of Justice Approves AT&T-BellSouth Merger Deal

6:30 am on October 12, 2006 | Category: Business, Corporate, Regulation

The U.S. Department of Justice has given its unconditional approval to AT&Tâ€™s acquisition of BellSouth Corp., saying that there is little chance for the merger to significantly reduce competition or damage consumer welfare.

The merger deal, which was first announced in March, is now worth an estimated $80 billion. If approved by the FCC, it will not only form a new telecommunications superpower, but also unite Americaâ€™s biggest cell phone carrier, Cingular Wireless, under a single owner.

BellSouth and AT&T will be more efficient and innovative as a merged entity, executives from both companies claim, especially when it comes to the roll-out next generation communication services, such as converged wireless and VoIP.

“This unequivocal and unconditional approval underscores the competitive nature of our industry and the pro-competitive benefits of this merger,” commented AT&Tâ€™s General Counsel, James D. Ellis, on the Department of Justice decision. “AT&T is focused on bringing more video choices and next-generation broadband services to as many consumers as possible and our merger with BellSouth will help deliver these benefits to more consumers, more quickly.”

The Federal Communications Commission is expected to vote on the massive merger before the end of this week, and despite the support of Chairman Kevin Martin, many analysts believe that FCC regulators will impose conditions on the deal.

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