AT&T AND BELLSOUTH MERGER

AT&T Inc. said Sunday it will acquire smaller rival BellSouth Corp. for $67 billion in stock, in a deal that goes a long way toward resurrecting the old Ma Bell telephone system. The deal would substantially expand the reach of AT&T, already the country's largest telecommunications company by the number of customers served. Consumers groups have voiced strong concern. AT&T was formed by San Antonio-based SBC's acquisition of AT&T Corp. in November. The deal added a substantial national reach to the former Southwestern Bell's local business, which is concentrated in 13 states, including Texas, California, and the Midwest. BellSouth is the dominant local telephone provider in nine Southeastern states. The merged company would have 70 million local-line phone customers and nearly 10 million broadband subscribers. In wireless, AT&T and BellSouth are already partners, jointly owning the nation's largest carrier, Cingular Wireless LLC. Under the deal, the Cingular brand will be phased out in favor of the AT&T brand “AT&T Wireless Inc.”

AT&T Inc. said Sunday it will acquire smaller rival BellSouth Corp. for $67 billion in stock, in a deal that goes a long way toward resurrecting the old Ma Bell telephone system. The deal would substantially expand the reach of AT&T, already the country's largest telecommunications company by the number of customers served. Consumers groups have voiced strong concern. AT&T was formed by San Antonio-based SBC's acquisition of AT&T Corp. in November. The deal added a substantial national reach to the former Southwestern Bell's local business, which is concentrated in 13 states, including Texas, California, and the Midwest. BellSouth is the dominant local telephone provider in nine Southeastern states. The merged company would have 70 million local-line phone customers and nearly 10 million broadband subscribers. In wireless, AT&T and BellSouth are already partners, jointly owning the nation's largest carrier, Cingular Wireless LLC. Under the deal, the Cingular brand will be phased out in favor of the AT&T brand “AT&T Wireless Inc.”