COMPETITION COALITION RESPONDS TO DEPARTMENT OF JUSTICE APPROVAL OF AT&T/BELLSOUTH MERGER

For Immediate Release

Contact: Jason Oxman, Competition Coalition, 202-785-2100

Washington, D.C. (October 11, 2006) -- The Department of Justice today issued a press release announcing approval of the merger of AT&T and BellSouth. The announcement comes as a federal court continues to scrutinize DoJ’s approval of the SBC/AT&T and Verizon/MCI mergers. Just days ago, the bipartisan leaders of the House Judiciary Committee, in a letter to DoJ, urged the agency not to act on the AT&T/BellSouth merger until the pending Tunney Act review was complete. The DoJ also received a bipartisan letter from members of the Senate Judiciary Committee expressing similar concerns about the proposed merger.

By issuing a press release instead of a consent decree, DoJ avoids judicial review of the AT&T/BellSouth merger approval. The Tunney Act only permits judicial review of actual consent decrees, such as those entered into by the DoJ as part of its approval of the SBC/AT&T and Verizon/MCI mergers.

The following statement can be attributed to Andrew Schwartzman of the Competition Coalition. Schwartzman is also the President and CEO of the Media Access Project:

“Unfortunately, by endorsing the largest telecommunications merger in history, the DoJ ignored the interests of consumers and the valid concerns raised by many experts and organizations that the reconstitution of Ma Bell will lead to higher prices, job cuts, violations of customer privacy, and a widening of the digital divide. AT&T, with the help of a complicit government, is poised to control nearly half of the nation’s phone lines, and will also be the largest wireless and broadband Internet company in the country.

Now all eyes are on the FCC, which has the last opportunity to impose meaningful conditions to protect consumers against AT&T’s monopoly. If the FCC joins DoJ in shirking its responsibilities, all Americans will be beholden to this massive beast. If consumers thought gas prices were out of control, wait until they get their next phone bill.”

All told, the DoJ has now approved five (AT&T/BellSouth, SBC/AT&T, SBC/Ameritech, SBC/Pacific Bell, SBC/SNET) acquisitions by the “new” AT&T, creating the largest communications company in the world. The AT&T/BellSouth merger must still be approved by the FCC.

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The Competition Coalition is an organization concerned about the remonopolization of the old Ma Bell telephone network. Through its web site, and outreach to diverse communities, the Competition Coalition encourages widespread public input into review of the AT&T/BellSouth merger. For more information on the Competition Coalition and the chorus of voices that are fighting the AT&T/BellSouth merger, visit www.mergermonster.com.