The New York State Public Service Commission yesterday voted unanimously to approve the proposed merger of SBC Communications Inc. and AT&T Corp. The vote also applies to the companies subsidiaries that are certified to provide telecommunications services in New York State.
The merger will not change the rates, terms or conditions of services currently provided in New York by either of the merging companies, the commission said. Thirty-two of 36 states, as well as the District of Columbia, already have cleared the merger.
[T]he merger represents a substantial investment in New York’s dynamic, competitive market by a major telecommunications company with approximately $80 billion in market capitalization, noted Commission Chairman William M. Flynn in a news release. This merger will enhance the ability of SBC and AT&T to compete in New York, and it should spur continued growth and technological innovation in an increasingly competitive telecommunications environment in New York.
SBC’s subsidiaries include SBC Long Distance, SBC Telecom Inc., SNET America Inc. and SNET Diversified Group. The terms of the merger call for AT&T to become a subsidiary of SBC; shareholders of AT&T will exchange their stock for SBC stock.
The merger remains under review at the FCC and the Department of Justice.