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Saturday, December 30, 2006

AT&T-BellSouth Deal Closes

The connected world landscape changed significantly yesterday when the FCC agreed to the largest U.S. telco merger ever, uniting AT&T and BellSouth and thereby bringing Cingular under one roof.  The new AT&T provides Internet and phone service across large areas of the midwest, southwest and southeast, and is the largest cellular carrier in the U.S.  The merger complements the industry crossovers trend identified in Connected World and is similarly driven by the promise of Internet-based services.  The new AT&T is expected to provide a wider array of services, including video services that compete with cable TV, as well as unbundled DSL (an eleventh-hour concession along with net neutrality; see yesterday’s post below).  See article.

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