The FCC has modified the terms of the AT&T and Bellsouth merger:

AT&T is required to offer a reduced rate to other phone companies that use its networks to connect calls. That means former Bell phone companies Verizon and Qwest, which use AT&T networks in some U.S. regions, would also pay the lower rate.

AT&T had previously agreed to cut the rate on the condition that Verizon and Qwest do the same, incurring the wrath of Verizon and Qwest and raising questions among some lawmakers.

US FCC agrees to changed AT&T/BellSouth condition, Reuters, March 27, 2007; 2:56 PM

On the one hand, this seems to level the playing field somewhat. Continue reading →