Tuesday, January 2, 2007

AT& T-BellSouth deal called 'breakthrough' for consumers

Leslie Cauley (1.2.07)
http://www.usatoday.com/printedition/money/20070102/fcc02.art.htm

FCC's ability to get net neutrality sets precedent

The FCC's approval of the merger between AT&T and BellSouth on Friday allowed the deal to close immediately. To secure the FCC's blessing, AT&T agreed to a list of consumer-friendly concessions. Among them: For the next 30 months, AT&T agreed to sell "naked" DSL — meaning consumers don't have to buy any other service from AT&T to get the DSL service — for just $19.95 a month. That's less than half the $44.95 that AT&T now charges.

AT&T also agreed to a "net neutrality" provision that will require the company to treat all broadband services, its own as well as rivals', equally for the next two years. That means AT&T can't favor its own traffic, in terms of transmission speed and quality.

In addition, AT&T agreed to sell some unused wireless spectrum. That could enable a new rival to enter the market, creating more options for consumers.

Adelstein called the settlement a "breakthrough" for consumers in that it establishes a new standard of behavior for the USA's communications giants. Big companies such as AT&T and Comcast "have told the FCC that they can't live with a net neutrality provision in place," Adelstein said. "They can."

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