AT&T, BellSouth End The Year As One

Telecom Policy Report, Jan 8, 2007

Additional Benefits: A detailed reading of the merged entity's commitments will show other important benefits in addition to the ones I have already described. Let me briefly highlight just a few of these. Because the loss of jobs is so often the first cost-cutting move of any merger, I am pleased at the company's willingness to repatriate approximately 3,000 jobs from overseas back to the United States, with at least 200 jobs being created in the hurricane-ravaged area of New Orleans. I believe this commitment is the first such job repatriation ever to accompany a telecom merger. While I fear other jobs will be lost, this provides at least some job comfort for the company's employees. The revolution in communications that we are witnessing must not come at the expense of America's hard-working communications workers. Indeed, these high-quality, dedicated, and organized workers are key to bringing us the next generation of communications services.

I am also pleased that the merged company has made public safety commitments that will help protect our nation's communications networks in the event of a natural or man-made disaster. As I have often stated, providing for the safety of the people is the most important role that a government can fulfill. So I am pleased that the merged company will ensure that legacy AT&T's first-rate disaster recovery resources will now be made available in the former BellSouth states. The company should be commended for developing these advanced capabilities beyond any government mandate to do so, and I believe that expansion of this capability to an additional broad swath of the nation is an important step forward in readying ourself for the next disaster. I have also stated that the FCC should lead the charge in securing the security, reliability, and robustness of our networks, including through public-private partnerships. Towards that end, the merged company will donate $1 million to non-profit or public entities for the purpose of promoting public safety.

Our disabilities communities get easily left behind in such huge transactions. So I am pleased that the merged entity has agreed to produce an important report on its service to consumers with disabilities--a report that can help the Commission in its mission, mandated by statute, to ensure the availability of effective and comparable communications tools to all our people. I should note that Cingular Wireless--which will now be owned wholly by the merged entity--has distinguished itself in its willingness to work with us on disabilities and public safety issues. I look forward to continuing that relationship in the years ahead, as well as to learning what new initiatives and policies the merged entity will pursue to make sure that every American has access to the wonders of the communications revolution.

Further, in what many might see as a very technical agreement, but an important one nonetheless, the company has agreed not to use our forbearance procedures to evade or frustrate any of the commitments it has made here. We have also been quite cognizant in recent months of the Tunney Act proceeding concerning the prior merger between SBC and AT&T that is currently pending in district court. While the resolution of this issue will ultimately be between the federal courts and the Justice Department, I do believe the FCC's public interest review of this merger must take into account a concern about whether the ultimate decision in the prior mergers will be reflected in this current, related merger. To alleviate this concern, the company has agreed to come back to the FCC after the courts and the Justice Department have resolved the pending proceeding to work with us in good faith to ensure that any remedies ultimately imposed in the prior merger are adequately addressed here.