WASHINGTON-The Federal Communications Commission will not act on the $79 billion merger of AT&T Inc. and BellSouth Corp. until after the Nov. 7 midterm elections, scrapping a Nov. 3 scheduled vote on the deal due to Chairman Kevin Martin’s failure to strike a deal with the agency’s two Democratic members.
Martin, speaking to reporters following today’s meeting, said progress is being made, but added that serious differences remain. “I think we’re pretty far apart,” Martin said. Martin dodged reporters’ questions on whether the Office of General Counsel might clear Republican Robert McDowell to vote on the AT&T-BellSouth transaction. McDowell voluntarily disqualified himself from the proceeding in August because of past lobbying for a trade group-Comptel-whose members compete with Bell telephone companies.
McDowell did not participate in last week’s decision to classify broadband over power line-enabled Internet access as an information service, freeing it from common carrier regulations and thus placing it on a level playing field with cable modem and digital subscriber line broadband services dominated by the telephone and cable TV industries. McDowell’s office said the commissioner was barred by ethics rules from involvement in the matter-initiated by United Power Line Council-because Comptel was a party to the proceeding and McDowell was employed by the association within the past year. This is the third time the FCC has postponed a vote on the AT&T-BellSouth merger, which the Justice Department recently approved without conditions to the chagrin of consumer groups and others.
Wireless operators want the FCC to impose conditions on special access lines and broadband wireless assets held by AT&T and BellSouth, co-owners of No. 1 Cingular Wireless L.L.C.
There is speculation a Democratic takeover of one or both chambers of Congress could complicate FCC approval of the AT&T-BellSouth hook-up, but telecom analysts predict the merger will win final regulatory approval before the end of the year.
