SBC Communications Inc. said it made a joint filing with the Federal Communications Commission as part of its pending $16 billion acquisition of AT&T Corp. The deal, which was announced last month and is expected to close within a year, will link SBC’s domestic wireline operations with AT&T’s domestic and international long-distance offerings.
SBC said the initial FCC filing begins the formal federal review process at the FCC and U.S. Department of Justice aimed at determining that the merger is in the public interest. The proposed deal follows several recent merger-and-acquisition announcements in the telecommunications industry, including SBC’s wireless operation Cingular Wireless L.L.C.’s $41 billion acquisition of AT&T Wireless Services Inc.
“This is a natural and healthy evolution of a dynamic, competitive and restructuring communications industry,” said Edward Whitacre Jr., chairman and chief executive officer of SBC. “It is a direct response to a new competitive reality-and to retail and business customers who have so many more choices in communications today than 10 years ago, when the last federal telecom laws were passed.”
While the acquisition has garnered criticism from consumer advocacy groups claiming the deal will reduce competition and increase prices, SBC claims more than 260 consumer, business and civic organizations have announced support for the merger.
