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FCC commissioner says he's ready to get up to speed on AT&T-BellSouth review if called
By BRUCE MEYERSON
AP Technology Writer
The Associated Press
FCC (News - Alert) Commissioner Robert McDowell expressed confidence Tuesday that he could get up to speed quickly if he is called upon to join the agency's deadlocked review of AT&T (News - Alert) Inc.'s proposed purchase of BellSouth Corp.
He offered few clues, however, to his viewpoint on the deal or the impasse.
McDowell, who recused himself from the agency's review because he recently worked for an industry group that opposed the deal, said he saw last year's takeovers of the old AT&T Corp. by SBC Communications and of MCI by Verizon (News - Alert) Communications Inc. as a good template to follow.
"This transaction is not that different from the two we saw last year, and I would hope my colleagues would proceed along a similar path," McDowell, a Republican appointee, said in response to questions after a speech at a Credit Suisse investor conference in Manhattan.
In the AT&T and Verizon deals, the companies sold off certain overlapping assets, including hundreds of phone and broadband lines serving hundreds of commercial buildings.
With McDowell not participating in the review of AT&T's plan to buy BellSouth (News - Alert), the remaining four commissioners have split along party lines, with the two Democrats pushing for more conditions to minimize what they see as a loss of competition that would hurt customers.
On Friday, FCC Chairman Kevin Martin asked the commission's general counsel to see whether it would be in the public interest to authorize McDowell to join the review and break the tie. A decision is expected this week.
An AT&T executive who also spoke at Tuesday's conference said his company was "flexible" about discussing conditions.
AT&T Chief Financial Officer Rick Lindner stressed that, unlike the situation in last year's deals, there are fewer than 25 commercial buildings where AT&T and BellSouth own the only connections serving those locations.
In an interview, Lindner said the divestiture of such assets was unnecessary but didn't rule out the possibility, saying such a request would have to be viewed within the context of an overall agreement with the FCC.
"I don't know if that issue is even on the table," he said. "It's something where we would have to see what the total package is and have some commitment there'd be approval."
Lindner expressed optimism that bringing McDowell, a Republican, into the deliberations "will help break the log jam," possibly in time for the FCC's next public meeting, which is scheduled for Dec. 20.
"If it doesn't happen on the 20th, it could slip into January," said Lindner, noting that the deal has already collected all other needed approvals -- from the Department of Justice and the states where the companies operate. "All of these approvals were received without any conditions and all these approvals were in hand two or three months ago."
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