DOJ — “Antitrust? What's That?”

The U.S. Department of Justice Antitrust Division approved the AT&T/BellSouth mereger without imposing any conditions. By law, the DOJ Antitrust division has no obligation to explain its decision to take no action. Nevertheless, Assistant Attorney General Thomas Barnett did issue a statement explaining the decision to take no action. Apparently, the market has gotten so much more competitive since the DOJ imposed (albeit wussy) conditions last year on the Verizon/MCI merger and SBC/AT&T merger last year that DOJ can’t imagine why this merger might be anticompetitive.

We now bounce over to the FCC, where Kevin Martin has placed approval of the AT&T/BellSouth on the agenda for tomorrow’s FCC meeting. But will the meeting take place? Can Martin get the merger through without conditions? And why didn’t DOJ at least pretend to care and enter into some wussy conditions — rather than just roll over like a good little industry lap dog begging for treats?

Some guesses below . . . .

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And Suddenly, the Universe Changed

Well, it’s been busy in the Senate today. While all the Senators were locked down by police on a mistaken report of gunfire, they took the time to confirm Robert McDowell for the FCC. For the first time since Michael Powell left in March 2005, the FCC is now back to 3 Republicans and 2 Democrats.

Over the last year, several controversial items have accumulated that the 2-2 Commission could not agree upon. For example, the long-awaited proceeding on media ownership rules, wherein the FCC will again try to relax or eliminate most ownership limits.

Critically, McDowell’s appointment strengthens Martin’s hand to approve the Comcast/Time Warner/Adelphia merger without significant conditions (whereas just yesterday I was hoping Martin would have to persuade the Democrats to agree to an order). The critical question — does Martin want to approve the merger without conditions? As I have written before, Martin has shown himself willing to stand up to the cable industry in the name of competition. For example, Martin co-authored an Op Ed with Senator McCain supporting imposing a la carte on cable.

So, what will Kevin Martin do? He has a free hand for the first time in his history as Chairman. Once again, I urge you all to help Martin make the right decision by following this link to file a comment urging the FCC to deny the Adelphia Transaction, or impose significant conditions.

As for the rest of the media ownership rules, the AT&T/BellSouth merger, and everything else in the media & telecom world

Stay tuned . . . .

This week's Candorville a MUST READ

Candorville started in the Washington Post last year, and it is an amazingly funny progessive comic strip. This week (April 3) features Bell mergers, Bellsouth’s disgraceful efforts to shut down the New Orleans muni wireless network, Bellsouth’s efforts to get the LA legislature to pass antimuni bills, and today why we need network neutrality.

Must send fan letter to Darrin Bell. He can say in four panels what it took me a whole essay to say.

Stay tuned . . . .

Bellsouth recinds donation because of free community wifi

I thought regular readers of Tales of the Sausage Factory might find this interesting.

Recently, the city of New Orleans (or what’s left of it) decided to set up free wifi for all residents to help bridge the damage to the communications infrastructure in the city and stimulate growth. This caused BellSouth to throw a little hissy fit, and snatch back the damaged building they donated to be the new police station.

Just shows the class of the telecommunications industry…