AT&T/BT mega-merger gets EC green light

NEWS The European Commission (EC) has approved the merger of AT&T and BT's international operations. In a statement, the EC said it gave the green light "after certain co-ordination issues between BT and AT&T in the UK had been resolved through undertakings submitted by AT&T". AT&T is currently rumoured to be winding down its business in the UK domestic market and is likely to sell the 22 per cent stake in Telewest it inherited with the takeover of TCI earlier this month. The joint venture between the two telcos will go up against the international operations of MCI WorldCom and Global One (made up of Deutsche Telekom, France Telecom and Sprint in the US). It'll target multinational customers. In addition to integrating legacy networks, AT&T and BT have said they will work on a global IP (Internet Protocol) network given the growing market for data services. The joint venture - which the companies predict will draw $10bn in revenue in its first year, making a $1bn profit - has yet to be named, but reports in The Guardian claim Aereos, Globecom, Ignite, Inzeo, Joule, and Vitality are some of the titles under consideration. Part-time BT chairman, Sir Iain Vallance, will chair the new company, while former Pointcast and Pacific Bell boss, David Dorman, was appointed CEO at the start of this month. The EC decision was brought forward three weeks, but the merger still needs approval from US regulators, including the Federal Communications Commission.