AT&T mega-merger pressures rivals
07 Mar 2006
Life for the former US telecommunication behemoth has turned a full circle after 22 years. With the $67 billion merger of AT&T and one of its seven regional "offsprings" BellSouth to create the world''s largest telecoms company has increased the pressure on rivals including Verizon Communications to join an industry-wide consolidation.
Announcing the deal, AT&T chairman and chief executive Edward Whitacre said the tie-up was "a logical fit" that would let the enlarged group offer a full range of fixed line, wireless and advanced IP-based services to consumers and businesses.
The merger reflected "that the world is changing and it''s changing faster and faster", he said.
"We saw that the sooner we did this, the better off we''d be." AT&T said it expected to cut 10,000 jobs between 2007 and 2009, as part of plans to eliminate $US18 billion in costs.
