U.S. Justice Department approves AT&T-BellSouth merger plan

The Justice Department on Wednesday approved the proposed acquisition of BellSouth Corp. by AT&T Inc.'s, clearing a major hurdle in a deal that would create the largest U.S. telecommunications firm.

Thomas Barnett, the department's antitrust chief, said his antitrust division had determined that the proposed transaction is "not likely to reduce competition substantially" for emerging technologies have changed the competitive landscape.

"The combination would not significantly increase concentration in the ownership of spectrum in any geographic area or give AT&T control over a large enough share of all spectrum suitable for wireless broadband services to raise competitive concerns," he said in a statement.

To the contrary, the merger "would likely result in cost savings and other efficiencies that should benefit consumers," he added.

However, the approval was immediately criticized by Federal Communication Commission (FCC) member Jonathan S. Adelstein, who slashed it "a reckless abandonment of Department of Justice's responsibility to protect competition and consumers."

The 67-billion-dollar merger, which still needs approval by the Federal Communications Commission (FCC), would create the U.S. largest telecom group. The FCC is scheduled to vote on the issue Thursday.

If the deal wins final government approval, it would allow AT&T full control of Cingular Wireless, the largest U.S. mobile operator, which it currently owns jointly with BellSouth.

Source: Xinhua