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AT&T Concessions May Ensure FCC Yes Vote For BellSouth Merger

By Staci D. Kramer - Thu 28 Dec 2006 09:15 PM PST

It’s like some odd variation on Dorothy’s trip back to Kansas from Oz—the return ticket was always within her own power. Now it looks like the solution to the deadlocked FCC stance on the AT&T-BellSouth merger was in the acquiring company’s grasp all along: concessions meaningful enough on net neutrality and other issues to move Democratic FCC commissioners “no” to the “yes” column. In a (pdf) submitted to the FCC Thursday, AT&T outlined its “final merger commitments” (including yet another statement that it doesn’t believe the concessions should be necessary).
Reuters: A vote could come as early as Friday. “The No. 1 U.S. telephone carrier said it would sell off certain wireless airwaves in the 2.5 gigahertz band, offer a $19.95 per month stand-alone basic high-speed Internet service and for up to 24 months would not charge content providers like Google Inc. to speed their services to consumers.” The company also extended a promised freeze for some wholesale rates to 48 months from 30 months.
AP: The net neutrality commitment and other concessions come after “a week of marathon negotiations” with lawyers for Democrats Michael Copps and Jonathan Adelstein; Republican commissioner Robert McDowell’s recusal gave the Dems more power.
Related: As The FCC Turns: McDowell Declines Right To Vote; AT&T-BellSouth Stalled

Posted in: Companies, AT&T, Legal, FCC, VC+M&A



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