FCC Delays AT&T/BellSouth Vote - Again McDowell may come back to cast tie-breaking vote Tipped by Alpine 
The FCC's vote on whether to approve the merger of AT&T and BellSouth has been delayed for the third time, as the FCC remains deadlocked over what conditions should be imposed on the telco before approval. New Republican commissioner Robert McDowell had recused himself because he had lobbied for CLECs previously, but may be brought it to cast a tie-breaking vote in the partisan deadlock. "While we regret that the merger has been delayed by the self interest of commercial entities and their litany of unreasonable demands, we look forward to the FCC's approval," says AT&T spokesman Michael Balmoris. Consumers Union Senior Vice President Gene Kimmelman meanwhile has expressed optimism that things are heading in the right direction, but noted "there's still a long way to go to address consumer concerns."
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 jtel
join:2005-06-28
Bristol, RI | AT&T Sweating Bullets They want this over with before the end of the year when a possibly democrat controlled house or senate could push this the wrong way. They should have just bought out Cingular and left the rest. I never read anywhere what analysts felt the breakdown was, how much is the Bell South portion of the merger costs? Bell South is ravaged by hurricane damage every year and after Katrina they are now completely self insured $$$$. Cingular control is the gem.
McDowell steps in and votes for the merger, ends controversy, retires with a bonus. | |
|  | | | Re: AT&T Sweating Bullets You forget the part where's he's employed by a think tank to spew noxious disinformation about the benefits of giving corporations complete freedom from law. | |
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| | don't worry, be happy just a slight bump in the road - mimimal conditions will be applied and the deal will be approved. And I suspect even what conditions are imposed will probably expire after a year or two.
Ma Bell, here we come (again)! | |
| |  ThrowDemsOutIf you can't convince 'em, confuse 'emPremium
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Mullica Hill, NJ
kudos:4 | Re: don't worry, be happy said by nasadude:just a slight bump in the road - mimimal conditions will be applied and the deal will be approved. And I suspect even what conditions are imposed will probably expire after a year or two. Ma Bell, here we come (again)! The 2 Dems on the committee don't want any merger conditions. They don't want the merger approved at all. So negotiations over merger conditions are nothing but a delaying tactic by them. Martin, I'm sure, knows this. Hence, McDowell will get clearance from the FCC's General Counsel very shortly and will vote to approve the merger. And I don't think it will be long in coming.
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| | | | | Re: don't worry, be happy quote:
The 2 Dems on the committee don't want any merger conditions. They don't want the merger approved at all.
That's completely inaccurate. | |
| | | | ThrowDemsOutIf you can't convince 'em, confuse 'emPremium
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Mullica Hill, NJ
kudos:4 | Re: don't worry, be happy said by Karl Bode: quote:
The 2 Dems on the committee don't want any merger conditions. They don't want the merger approved at all.
That's completely inaccurate. Why do you say that? Because they said so? And FCC commissioners wouldn't lie, right?
You say the FCC is all about politics all the time. Why wouldn't the Dems on the committee have an agenda to delay the vote long enough to kill the merger thru Congressional action if the election goes their way Nov 7?
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| Re: don't worry, be happy Because Copps and Adelstein are only moderately gutsy enough to try and block the merger entirely. The reason they're likely deadlocked is that the two are demanding real conditions such as naked DSL, not the pseudo-conditions pushed forth by AT&T's lawyers.
There's no evidence any of them wish to block the merger outright, unless you'd like to show us some. The Democrats on the FCC don't have the kind of progressive pro-consumer spine needed for such a move. They too are beholden to Las Vegas trips and other financial perks. | |
| | | | | | ThrowDemsOutIf you can't convince 'em, confuse 'emPremium
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1 edit | Re: don't worry, be happy said by Karl Bode:Because Copps and Adelstein are only moderately gutsy enough to try and block the merger entirely. The reason they're likely deadlocked is that the two are demanding real conditions such as naked DSL, not the pseudo-conditions pushed forth by AT&T's lawyers. There's no evidence any of them wish to block the merger outright, unless you'd like to show us some. The Democrats on the FCC don't have the kind of progressive pro-consumer spine needed for such a move. They too are beholden to Las Vegas trips and other financial perks. Well, we will find out soon enough. If the Dems on the committee are as you say, they will do a deal relatively soon and the merger will go thru with some limited conditions AT&T doesn't like.
But if they are truly just using delaying tactics, and Martin knows or suspects that is the case, then he will get McDowell's recusal reversed and the vote will come very quickly. »msnbc.msn.com/id/15545092/
Federal ethics regulations permit the FCC's general counsel to clear McDowell to vote as long as the "interest of the government in the employee's participation" outweighs any concerns about the how the vote may affect the agency's integrity.
The rules also say that once cleared by the general counsel, an employee "may not thereafter disqualify himself from participation." However, nothing would prevent him from abstaining.
Blair Levin, who was chief of staff for former FCC Chairman Reed Hundt and is now a telecommunications industry analyst for Stifel, Nicolaus & Co., predicted McDowell will be called on to vote if the stalemate continues.
"At some point in time — and I think that time is quickly approaching — the general counsel is entitled to declare a deadlock," he said.
Levin predicted that McDowell, despite the difficult position he is in, would not abstain. --
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2 edits | Re: don't worry, be happy quote:
Well, we will find out soon enough. If the Dems on the committee are as you say, they will do a deal relatively soon and the merger will go thru with some limited conditions AT&T doesn't like.
That's not necessarily true, either.
With the potential to at least take the house in the upcoming elections they may just be sowing their oats and acting cocky, dragging out the process. Or they may really be concerned about a particularly sticky condition Martin and his AT&T friends don't like, and the delay is due to legitimate ongoing negotiation.
Either way, McDowell could be brought in to break the deadlock, but even then he's shown he's not in 100% lockstep with Martin coming from CLEC lobbying land.
It's going to be approved; no doubt. But I don't think the issue here is that the Democrats want to block the merger outright. That's a position nobody in telco cash-soaked DC would have the cojones to take. | |
| | | | | | | |  AlpinePremium
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Atlanta, GA | Re: don't worry, be happy said by Karl Bode: It's going to be approved; no doubt. But I don't think the issue here is that the Democrats want to block the merger outright. That's a position nobody in telco cash-soaked DC would have the cojones to take. And why would they? No one has yet shown evidence that this merger is really anti-competitive. All their competitors are doing is asking for random handouts.
You mentioned naked DSL above. How does imposing naked-DSL in ANY way make this deal somehow more competitive within the telco industry? How would net-neutrality? All of these are simply bribes being demanded by consumer groups and telco competitors to stop whining for a minute so this deal can go through.
The FCCs role is not to hand out random sugar cookies to anyone who complains about a merger. It's to work out legitimate concerns about true anti-trust activities, of which there are few to none in this case. Leave it to the "progressives" to work for government handouts, though...
Adam | |
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| Re: don't worry, be happy quote:
And why would they? No one has yet shown evidence that this merger is really anti-competitive.
There isn't enough evidence in the world to satisfy individuals who vehemently believe corporations should not be impeded in their quest for profit by the rule of law amd consumer advocacy. No evidence on Earth will convince them that any consumer complaint is ever valid.
If you're actually interested in data suggesting the negative impact for consumers of such a merger, there is plenty of it available in the commentary to the FCC.
»gullfoss2.fcc.gov/prod/ecfs/retr···18537214
Obviously there's plenty supporting your view as well from economists who believe deregulation is the wisest path.
quote:
You mentioned naked DSL above. How does imposing naked-DSL in ANY way make this deal somehow more competitive within the telco industry? How would net-neutrality? All of these are simply bribes being demanded by consumer groups and telco competitors to stop whining for a minute so this deal can go through.
Naked DSL was simply an example of a potential condition they could be arguing over. I do not proclaim to be suggesting it is a functional solution for any anti-competitive ramifications of the merger.
Equally, I do not believe net-neutrality should be a condition as the people deciding these issues have yet to understand what it is, much less how to regulate it. | |
| | | | | | | | | | AlpinePremium
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Atlanta, GA
1 edit | Re: don't worry, be happy said by Karl Bode: No evidence on Earth will convince them that any consumer complaint is ever valid. I don't think that's necessarily true. Some of the first people to cry foul (including me) when BellSouth and others kept charging the "regulatory recovery fee" after it was repealed were proponents of deregulation and less big-gov intervention. And it worked - all of those companies (AFAIK) backed off in a hurry.
Naked DSL was simply an example of a potential condition they could be arguing over. I do not proclaim to be suggesting it is a functional solution for any anti-competitive ramifications of the merger.
Equally, I do not believe net-neutrality should be a condition as the people deciding these issues have yet to understand what it is, much less how to regulate it.
I agree on both counts, but I think many people disagreeing with the merger are just grasping at straws to either improve their own bottom line or simply to make themselves publicly known as anti-consolidation.
I wonder what opponents of this merger think they're going to achieve if, per chance, the merger was denied or AT&T decided there were too many restrictions to make it viable. Would the competitive landscape suddenly be up to their standards? Would two separate telcos with less resources be able to compete with the big national cable companies who already have an infrastructure advantage?
I understand people's concerns about consolidation. I really do! I'm a consumer, too. But the reality is that the competition in broadband is NOT intra-telco industry. It's INTER-industry - telcos versus cable companies. In my view giving the telcos the resources to compete against the cable companies is the best way to foster further competition in the long run. Handicapping telcos and preventing them from really bulking up for the fight is really shooting true competition in the foot.
Adam
Edit: Mixed up "Intra" and "Inter."  | |
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1 edit | Re: don't worry, be happy quote:
I don't think that's necessarily true. Some of the first people to cry foul (including me) when BellSouth and others kept charging the "regulatory recovery fee" after it was repealed were proponents of deregulation and less big-gov intervention. And it worked - all of those companies (AFAIK) backed off in a hurry.
That was such an egregious example of skulduggery, people couldn't really help but take an opposing position. Including the companies themselves, ultimately. Obviously for more complicated situations like the impact this merger will have, you're going to have more muddy levels of debate. Personally I don't believe the merger will result in the end of the world, but I do reserve worry that rabid ideological deregulation and endless consolidation does little more than fatten investor wallets while leaving terminated employees and other minutae in its wake. quote:
In my view giving the telcos the resources to compete against the cable companies is the best way to foster further competition in the long run.
Fortunately for you, you'll get to see if this is the case. | |
| | | | | | | | | | AlpinePremium
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Atlanta, GA | Re: don't worry, be happy said by Karl Bode: Personally I don't believe the merger will result in the end of the world, but I do reserve worry that rabid ideological deregulation and endless consolidation does little more than fatten investor wallets while leaving terminated employees and other minutae in its wake. I believe there's a place for a certain amount of regulation, and we have a large amount now. What about the other side of the coin: gridlock, lack of flexibility and insane overhead costs brought about by rabid ideological REGULATION? Those burdens aren't exactly a recipe for agile companies able to quickly serve their customers' needs.
As for the oft-used "what about the layoff employees" argument, it's a non-starter here. AT&T is estimating 10,000 layoffs out of 350,000 total people in the company over -two years-. That's absolutley nothing. That's vastly less than those who lost their jobs in the dot-com bust. And remember what happened the last time BellSouth offered their employees a buyout. Those who wanted it were offered 7% of their salary for each year of employment with the company up to a max of 150%. Mid-level people (NOT executives) were walking away with $100,000+ in cash. That's not to mention the continued benefits and offer to pay for a year of continuing education. People I know from BellSouth were almost literally begging to be chosen. Not exactly like getting a pink-slip in the mail. Anything AT&T would do will be similar.
Fortunately for you, you'll get to see if this is the case. Not just fortunately for me. I think it'll be fortunately for all of us. The alternative, I believe, is the cable companies dominating. And even the telco-haters can't be happy with that idea.
Adam
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| Re: don't worry, be happy quote:
As for the oft-used "what about the layoff employees" argument, it's a non-starter here. AT&T is estimating 10,000 layoffs out of 350,000 total people in the company over -two years-.
That's a pretty big deal to the estimated 10,000 employees. Here's to hoping your optimistic severance scenario is accurate. quote:
The alternative, I believe, is the cable companies dominating.
Putting DSL on equal footing with cable as an "information service" is part of a different discussion. I had no problem with that classification.
I do remain skeptical about, as I said, this quest for total deregulation (cable or telco) as it is currently presented: some gift from the gods that results in full deployment, low prices, and laughing children playfully dancing in sunbeams.
As-so-far as I've ever been able to see, deregulation as it exists in the minds of Libertarians and Conservatives is nothing more than a push to maximize revenue and weaken the law, dressed up as a panacea. | |
| | | | | | | | | | AlpinePremium
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Atlanta, GA
1 edit | Re: don't worry, be happy said by Karl Bode:I do remain skeptical about, as I said, this quest for total deregulation (cable or telco) as it is currently presented: some gift from the gods that results in full deployment, low prices, and laughing children playfully dancing in sunbeams. Maybe, but I could say the exact same thing about "total regulation."
Adam
PS. My God. Were we just able to have an intelligent debate on this site without people jumping in to scream, curse and accuse people of being shills or commies? Miracles never cease! | |
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| Re: don't worry, be happy quote:
Maybe, but I could say the exact same thing about "total regulation."
I don't know anybody who advocates for total regulation. Nor do I know any person or organization intentionally pushing for bloated, dysfunctional regulation that cripples industry. Not to say that isn't the residual effect of some idiot legislators, but it is not an actual position.
I could however rattle off about fifty well funded telecom think tanks who do in fact push for an extreme position where Uncle Sam has absolute no regulatory authority over industry. That really is their goal, it is not hyperbole.
I would have fewer issues about this if this goal was presented honestly (we want maximum profits, and a weak Uncle Sam), but it's frequently sold under the guise of consumer advocacy, and that will venomously annoy me until the day I'm buried. | |
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| | | | | jtel
join:2005-06-28
Bristol, RI | "The reason they're likely deadlocked is that the two are demanding real conditions such as naked DSL, not the pseudo-conditions pushed forth by AT&T's lawyers."
The condition that they are desperate to stay away from is "wireless bandwidth, use it or lose it". | |
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| | | I have no evidence that any merger condition has ever been actively monitored by the FCC. Given complete lack of enforcement, I do not know why some companies like AOL adhere to conditions while others like Verizon and SBC (AT&T) get away with ignoring them. | |
| | | | Here is a fun condition: Make BST or SBC sell their stake in Cingular to a 3rd party (Verizon Wireless). 
Boy, Lord Whitacre and Darth Ackerman would be P-O on that condition. | |
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| | Sammer
join:2005-12-22
Canonsburg, PA | Re: bringing him back = still biased Not only that but even after the merger takes place the court has to review it. Remember that the judge that reviewed the SBC / AT&T merger wasn't too pleased that he was just expected to rubber stamp it. | |
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m60521
join:2001-12-28
Hinsdale, IL Reviews:
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| Conditions of merger Maybe the conditions of this merger should be that the honor the conditions of their last merger. Where is the unbundled (naked) DSL that was mandated by the merger of SBC with AT&T?
The FCC is a purchased government agency. They are not for consumer protections. Where is the Dept of Justice? | |
| | | | Re: Conditions of merger After election day u will see the votes | |
| | | | | Re: Conditions of merger @ brooklynman I agree 100% I believe they will pass the anti net neutral law also in favor of Telcos and Cablecos also after the election | |
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Reno, NV
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 envoid
join:2002-12-21
Duluth, GA | Bring in McDowell?? They shouldn't even be creating this thought! They're better off having a janitor sit in a closet with all the info and come out with a yay or nay. The buddy system is not dead yet apparently...  | |
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bringing him back = still biased
