December 29, 2006

AT&T adds concessions to win OK for BellSouth deal - MarketWatch

AT&T adds concessions to win OK for BellSouth deal - MarketWatch:

While ATT & BellSouth have been aggressive in deploying DSL broadband, this is a major milestone among the other concessions that AT&T is making to satisfy the Democrats on the FCC.

The stock price movement today suggests the market believes the deal will be approved today. (Update: The deal is done as reported here.)

Some argue that this deal creates a company that is too big. Arguably, telecommunications in the U.S. will be an oligopoly, having moved from monopoly 25 years ago through a technological upheaval and the explosion of wireless services. Reliable network infrastructure requires deep pockets to build, maintain and infuse new technology. This cannot be done at scale by a myriad of small companies.

The good news is that the overwhelming majority of our domestic networks are owned by U.S. companies.

"AT&T-BellSouth would also offer broadband Internet access to 100% of residential-living units in the company's in-region territory by the end of 2007, using a mix of wireline and wireless technology."

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