SBC to take AT&T name

[TexasStooge]

NEW YORK (AP) — The storied AT&T name will live on after the long distance phone company is acquired by SBC Communications Inc., which is renaming itself and most of its products under the 120-year-old brand.

The announcement Thursday came amid reports that federal regulators are set to approve SBC's $16 billion purchase of AT&T Corp., its former corporate parent, in a deal first announced back in January.

The name change had been widely predicted ever since the merger was announced given the global recognition and reputation of AT&T as compared with SBC, a little-known brand outside the 13 states where it provides local phone service.

AT&T, which once stood for American Telephone and Telegraph, traces its roots as a company back to the 1876 invention of the telephone by founder Alexander Graham Bell. But the name did not come into being until a decade later, when it was created as the long-distance subsidiary of American Bell Telephone Company.

San Antonio-based SBC, one of the "Baby Bells" created by the 1984 breakup of AT&T's national monopoly, was formerly named Southwestern Bell Corp.

Recent news reports have indicated that the Justice Department and the Federal Communications Commission could approve the merger as soon as this week or next, raising the possibility the deal could be completed by late November—more than half a year earlier than SBC initially projected.

The name change will not affect Cingular Wireless LLC, a joint venture between SBC and BellSouth Corp. that became the nation's largest cell phone provider about a year ago with the $41 billion purchase of AT&T Wireless, a former AT&T subsidiary.

The combination of SBC and AT&T will create a company that's either the largest or second largest player in its various markets. Top rival Verizon Communications Inc. is preparing to increase its heft as well with the acquisition of MCI Inc., a deal spurred by the AT&T acquisition.

AT&T was far more profitable than its Bell offspring until the past decade, as new rivals and technologies such as cell phones and e-mail began eating away at the long-distance business.

Last week, the company reported that its customer base had sunk below 20 million homes, barely a third of the 60 million it once boasted.

Meanwhile, interstate and international phone service now sells for just pennies a minute, down from the dollars per call such services once generated.

[TexasStooge]

Justice Dept. OKs phone mergers

WASHINGTON (AP) — Federal antitrust regulators on Thursday approved the multibillion-dollar mergers of SBC Communications Inc. with AT&T and of Verizon Communications Inc. with MCI Inc.

The Justice Department approved the deals without any significant conditions, such as the asset sales that critics said were needed to ensure adequate competition. The Federal Communications Commission still must sign off on the mergers, and that could come as early as Friday.

The SBC merger, valued at $16 billion, won't be the end of the AT&T name. SBC plans to change its corporate name to the iconic AT&T, company officials said Thursday. Verizon plans to keep its corporate name after the $8.5 billion merger with MCI.

Justice Department approval requires Verizon and SBC to lease to smaller competitors several hundred unused or "dark" lines that run to buildings serving mostly business customers. The leasing is required in 19 metropolitan areas where the companies, either SBC or Verizon, would be the only providers.

Without the condition, the mergers would have resulted in higher prices for certain customers in eight metropolitan areas in Verizon's territory and 11 metropolitan regions in SBC's area, the Justice Department said.

In addition to switching to the AT&T name, SBC also said it plans to adopt a new stock market ticker symbol and unveil a new corporate logo. It declined to say whether that meant it might adopt AT&T's distinctive longtime "T" ticker symbol, or incorporate the familiar AT&T globe in the new logo.

SBC and Verizon already are the largest regional phone companies, and AT&T and MCI dominate the market for business customers. The mergers would enhance the base of business customers for Verizon and SBC and expand their national and international presence.

Critics say the mergers will lead to fewer choices for consumers and higher prices, a claim SBC and Verizon dispute.

Jeff Kagan, an independent telecom analyst in Atlanta, said the mergers are indicative of an industry that is in the midst of massive change.

For the past 10 years, local phone companies have been engaged in a fierce battle with long-distance companies for customers, with the local carriers emerging largely victorious. Now, Kagan said, the merged phone giants will compete with cable companies—as cable offers phone and Internet services and the telephone companies offer video and Internet services.

"It's not going to be separate sectors," he said. "It's going to be single companies that sell all these services."

Verizon and SBC are still awaiting approval from several states. SBC expects its merger to close by the end of the year; Verizon expects to close by late this year, or early next year.

[TexasStooge]

Supervisors suspected of utility tinkering

By CHRIS HEINBAUGH / WFAA ABC 8

DALLAS, Texas - Three civilian supervisors with Dallas Fire-Rescue are in hot water for allegedly tinkering with water accounts.

At Dallas Fire-Rescue's 911 and 311 call center there is also an answering service for Dallas Water Utilities calls. Investigators want to know if several supervisors took advantage of their positions in that area by interfering with overdue accounts to keep water from being shut off.

Two supervisors are currently under investigation by Internal Affairs, but one has already been disciplined.

In that case, a supervisor had agreed to bring in a payment for a friend whose water was about to be cut off. But the supervisor forgot and ordered an employee to hold the cut off until the payment could be made the next day. The investigation found she had abused her authority and she was demoted.

But the other supervisors under investigation may be in deeper trouble for allegedly tinkering with their own accounts and writing hot checks for their water bills.

Internal Affairs is checking computers to see if the supervisors violated policy by accessing their own accounts.

To restore water service, delinquent customers must pay the full bill, a reconnection fee and face other possible penalties. However, the suspected supervisors might have bypassed the rules and dodged penalty fees.

"There were some liberties taken, and I guess some trust that was misused and misplaced," said Lt. Joel Lavender, Dallas Fire-Rescue. "And right now, we need to find out what happened, why it happened and how we can keep it from happening again."

Both supervisors are on administrative leave while Dallas Fire-Rescue moves to restore public trust.