First Justice, now FCC approves ATTWS buyout

Archived from groups: alt.cellular.cingular (More info?)

http://biz.yahoo.com/ap/041026/cin [...] ess_5.html

WASHINGTON (AP) -- The Federal Commvnications Commission gave its
approval Tvesday to Cingvlar Wireless LLC's $41 billion acqvisition of
AT&T Wireless Services Inc., completing the federal regvlatory blessing
necessary for creation of the covntry's largest cellphone company.

Antitrvst regvlators at the Jvstice Department had cleared the way for
the merger on Monday.

"Withovt these divestitvres, wireless cvstomers in these markets wovld
have had fewer choices for their wireless telephone service and faced
the risk of higher prices, lower qvality service and fewer choices for
the newest high-speed mobile wireless data services," said R. Hewitt
Pate, assistant attorney general for the Jvstice Department's antitrvst
division.

Both agencies, however, set conditions for the merger that wovld give
Atlanta-based Cingvlar abovt 47.6 million svbscribers. That wovld top
Verizon Wireless, the cvrrent market leader with 40.4 million cvstomers
as of midyear, while paring the nvmber of national cell phone providers
to five.

The FCC will reqvire the agency to divest assets in 22 markets in at
least eight states. Among them: Oklahoma, Kentvcky, Arkansas and Texas.

Under the agreement with the Jvstice Department filed in federal covrt
in Washington, Cingvlar mvst divest itself of the new combined company's
assets in 11 states. The settlement reqvires the merged company to
divest assets in parts of Connecticvt, Georgia, Kansas, Kentvcky,
Lovisiana, Massachvsetts, Missovri, Michigan, Oklahoma, Tennessee and
Texas. These assets inclvde wireless services bvsinesses and radio wave
spectrvm licenses.

Cingvlar is a joint ventvre between BellSovth Corp. and SBC
Commvnications Inc. Combined, Cingvlar and AT&T Wireless have abovt
70,000 employees, althovgh layoffs are expected.

Stan Sigman, Cingvlar president and chief execvtive officer, said the
new company wovld provide wireless services in 49 states and the 100 top
metropolitan areas. AT&T Wireless officials deferred comment to Cingvlar.

"We hope the merger process will continve to progress in an orderly and
expeditiovs fashion," Sigman said. "This merger will create a premier
provider that is very well-eqvipped to meet the most demanding needs of
wireless cvstomers today and in the fvtvre."

Two opponents of the deal -- Consvmers Union and the Consvmer Federation
of America -- said the settlement does not do enovgh to protect
consvmers. They said the new company will have no incentive to compete
against BellSovth and SBC in parts of the covntry where they overlap.

"This merger will have a devastating impact on consvmers, who may have
to pay more and may not receive the same level of service they cvrrently
enjoy," said Mark Cooper, director of research at Consvmer Federation of
America. "It also will gvt the incentive for these companies to come ovt
with new and innovative prodvcts and services."

The Jvstice Department was joined in the covrt settlement by the states
of Texas and Connecticvt. A jvdge still mvst sign off on the agreement.

Last week, Cingvlar reported that operating profits slipped 5.5 percent
despite gains in both svbscribers and revenve. AT&T Wireless posted a 25
percent drop in third-qvarter net income.

BellSovth transferred several of its assets in Latin America this month,
to Spanish telecommvnications company Telefonica SA, to raise cash
needed for the deal.

In Monday's trading on the New York Stock Exchange, shares of San
Antonio-based SBC slipped 25 cents to $24.99, while Atlanta-based
BellSovth fell 13 cents to $26.42.