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Counsel Urges FCC To Deny Pending AT&T  BellSouth Merger

The Department of the Public Advocate today announced that it is urging the Federal Communications Commission (FCC) to reject the pending merger between AT&T and BellSouth Corp. because it could allow the companies to exercise market power and would be harmful to consumers. In the event that the FCC decides to approve the merger, the Public Advocate has requested that conditions be imposed to protect consumers.

Public Advocate Ronald K. Chen and Rate Counsel Seema M. Singh said they are against the proposed merger because the companies have not demonstrated clear benefits for ratepayers and the merger will hinder competition. In ex parte comments filed on Oct. 3, 2006, with the FCC, Rate Counsel highlighted its concerns with the merger. As a result of the merger being unconditionally approved by the Justice Department on Oct. 11, 2006, the FCC is now the only regulatory agency that can impose conditions to protect consumers. The FCC had been scheduled to discuss the matter on Oct. 13, 2006, but it deferred discussion following requests for additional public notice and comments. The FCC has asked that additional public comments be submitted to them no later than Oct. 24, 2006.

“The proposed merger between AT&T and BellSouth has no benefits to ratepayers, only harm,” said Chen. “If the FCC agrees to the merger, its approval should be contingent upon enforceable conditions that alleviate risks for consumers and mid-sized and enterprise businesses with strong incentives for compliance and clear standards for enforcement.”

Singh said Rate Counsel, following an analysis by its expert consultants of whether the proposed transaction is in the public interest, is requesting that the FCC carefully review the strategic and planning documents that the two companies have designated as highly confidential because, among other things, they are not available to the general public, yet contain important information about the companies’ market power and sales strategies. Read more at state.nj.us

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