AT&T must divest assets in Louisiana, Mississippi
by MBJ Staff
Published: October 19,2009
The Department of Justice will require AT&T Inc. to divest assets in eight areas in Louisiana and Mississippi in order to proceed with its $944-million acquisition of Centennial Communications Corp.
The Department said that the transaction, as originally proposed, would substantially lessen competition to the detriment of consumers of mobile wireless telecommunications services in those areas, and likely would result in higher prices, lower quality and reduced network investments. The divestitures cover portions of southwestern and central Louisiana and southwestern Mississippi.
The Department’s Antitrust Division, along with the Attorney General of Louisiana, filed a civil lawsuit today in U.S. District Court for the District of Columbia to block the proposed acquisition of Centennial by AT&T. At the same time, the Department and the Louisiana Attorney General filed a proposed settlement that, if approved by the court, would resolve the competitive concerns in the lawsuit.
According to the complaint, AT&T and Centennial are each other’s closest competitor for a significant set of customers in eight cellular marketing areas, as defined by the Federal Communications Commission (FCC). The complaint alleges that the proposed transaction would substantially reduce competition for mobile wireless telecommunications services in each of these areas. The proposed settlement requires divestitures in these areas to eliminate the competitive concerns.
The transaction also is subject to review by the FCC. The Department has cooperated with the FCC’s separate review of this matter.
To sign up for Mississippi Business Daily Updates, click here.
Top Posts & Pages
- Bids on reworking Interstate 55 stretch are rejected
- Spivey named Under 40 Business Person of the Year by the Mississippi Business Journal
- JACK WEATHERLY: Economic development in these parts is a ‘family’ business
- ALAN TURNER: Education in Mississippi – good and bad news
- Hosemann to launch crowd funding program
- CFPB wants repay ability at center of new payday loan rules
- Terminal upgrade on indefinite hold at Jackson International Airport
- Two new casinos like the odds on Mississippi Gulf Coast
- Answering the Bell: Interim Ole Miss law school dean well-regarded for directing hands-on clinical training