Megamerger clears final checkpoint

SBC Communications completed its merger with Pacific Telesis last week, following approval from the California Public Utilities Commission.

Since they announced their intentions a year ago, both companies have emphasized the importance of sheer size.

"From day one, we've said that this is a merger of growth," said Edward Whitacre, chairman and chief executive officer of SBC. "We believe we now have the critical mass necessary for succeeding in the next generation of global competition.

The merger, which is the third largest in U.S. history, creates a company with a market value of $47.9 billion and annual revenues of $23.5 billion. The company's networks serve more than 31 million access lines and reach more than 87 million potential wireless customers.

Consumer advocacy groups and other carriers voiced their opposition to the merger for reasons both financial and competitive.

"Huge cost savings are going to result, and almost all of them are going to be pocketed by shareholders and not passed on to customers," said Tom Long, telecommunications attorney with TURN, a watchdog organization. TURN has not decided whether it will file an appeal with the CPUC, he said.

In a statement, AT&T expressed concern that the merger will impede the push toward more consumer choice in local markets.