October 11, 2006

DOJ gives approval for BellSouth purchase by AT&T, US

The United States Department of Justice on Wednesday approved the $67 billion purchase of BellSouth by AT&T, moving the company one step closer to becoming the largest mobile, broadband and Internet service provider. However, FCC approval is still needed and some commissioners have expressed concern that consumers will be hurt by a lack of competition.

Still, DOJ gave the green light with no special conditions, stating that, "After thoroughly investigating AT&T's proposed acquisition of BellSouth, the antitrust division determined that the proposed transaction is not likely to reduce competition substantially." The FCC is slated to vote on the deal Thursday, although there has been pressure from Congress to delay the matter.