AT&T Gets DOJ OK on BellSouth Buyout

DOJ Approves AT&T-BellSouth Merger Plan; FCC Members Copps and Adelstein Criticize Move

WASHINGTON (AP) -- AT&T's $78.5 billion buyout of BellSouth Corp. won Justice Department approval Wednesday, a decision that sets the stage for further reuniting modernized parts of the old Ma Bell phone monopoly broken up by the government in 1984.

The Justice Department approved the deal without conditions, which leaves the Federal Communications Commission as the final hurdle to the merger creating the nation's biggest provider of phone, wireless and broadband Internet services.

The decision was immediately criticized by the FCC's two Democratic members -- Jonathan S. Adelstein and Michael Copps, who characterized it as "a reckless abandonment of DoJ's responsibility" to protect consumers and smaller businesses.

Said Adelstein: "By failing to issue a complaint, consent decree, or condition, it appears DoJ took a dive on one of the largest mergers in history just to avoid further court scrutiny."

The world is a different place than it was in 1983. The services provided by today's local phone companies can be replaced with cellular (Verizon's cell rates are often CHEAPER than its land-line rates in rural areas), competing "local" phone companies in urban areas (in Rockford, Illinois, we had TDS-Metrocom for our carrier instead of SBC/AT&T. My employer uses ChoiceONE), a variety of carriers for long-distance calling, including dial-arounds and prepaid calling cards. Finally, cable companies and IP phone companies (e.g. Vonage) allow many to avoid having phone company service at all. Cable, local wireless, and satellite also offer alternatives to DSL and dial-up service.

There is no more phone service monopoly to keep broken.

I just received a notice from Bellsouth last week saying that my DSL bill will be reduced by about $3.00 a month due to the removal of some tariff.

Verizon did the same thing a few months ago. The next paragraph announced a rate increase. After the tax was added to the increase, there was no real change in the bill.

Here's the email announcement

Dear Valued Verizon Online Customer,

Effective August 14, 2006, Verizon Online will stop charging the FUSF (Federal Universal Ser vice Fund) recovery fee. We will stop being assessed the fee by our DSL network suppliers. Therefore, we will no longer be recovering this fee from our customers. The impact of the FUSF fee is as follows: for customers of Verizon Online with service up to 768Kbps, the fee eliminated is $1.25 a month; for customers of Verizon Online with service up to 1.5 Mbps or 3Mbps, the fee eliminated is $2.83 a month (based on current FUSF surcharge amounts). On your bill that includes charges for August 14, 2006 you will see either a partial FUSF Recovery Fee or no FUSF line item at all, depending on your bill cycle.

Starting August 26, 2006, Verizon Online will begin charging a Supplier Surcharge for all new DSL customers, existing customers with a DSL monthly or bundle package, and existing DSL annual plan customers at the time their current annual plan expires. This surcharge is not a government imposed fee or a tax; however, it is intended to help offset costs we incur from our network supplier in providing Verizon Online DSL service. The Supplier Surcharge will initially be set at $1.20 a month for Verizon Online DSL customers with service up to 768Kbps and $2.70 per month for customers with DSL service at higher speeds.

On balance your total bill will remain about the same as it has been or slightly lower. For more information, see the Announcement in the Help section of Verizon Central, located at http://central.verizon.net

We regret the need to add this Supplier Surcharge, but we thank you for choosing high speed Verizon Online DSL. We appreciate and value your business.

Sincerely,

Verizon Online
Broadband Customer Care Team

If Bellsouth doesn't start putting some serious money and line upgrades into it's grid it will be the communications crisis of the century in another decade or so. No new cables being laid. Older cable routes the Old Ma Bell would have replaced are being kept at a minimal functional level. Cable Splicers are almost non existant now.

AT&T was not the place to me when the split happened. Most of the ones who went with AT&T regretted doing so due to loss of their job. I don't see any good from this. Bellsouth workers will likely see the bare bones crews they now have cut deeper. Instead of a 15 minute wait to Bellsouth Repair you will wait 30 for someone in Boondok, Off Shore. That is after you go through the mandatory yes no yes no automated reporting system.

After it taking 15 minutes this morning to process an online B.S. payment and previous experiences with AT&T long distance unreliable billing this doesn't sound good at all.

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