ACLU wants delay of AT&T-BellSouth merger
Group cites allegation companies shared customer info with feds

New York Times News Service
Published on: 06/06/06

The American Civil Liberties Union wants the Federal Communications Commission to withhold approval of AT&T's acquisition of BellSouth until it reviews allegations the companies gave customer records to the government without warrants.

In a filing, the ACLU cited a provision in the Telecommunications Act that says, when considering a merger, the FCC must "weigh the public-interest harms of the proposed transaction against the potential public-interest benefits."

In making that consideration, the group said, the FCC should determine if AT&T and BellSouth handed over phone records to the National Security Agency's surveillance program and, if so, whether they violated any privacy laws in doing so.

The ACLU's action came after USA Today reported last month that AT&T, BellSouth and Verizon had provided the security agency with call records on millions of Americans in surveillance after the Sept. 11 attacks.

BellSouth has challenged the report, denying it provided phone records to the security agency.

"The FCC is in a position to determine whether the USA Today story is true and can bring the companies to the table and figure out whether they are providing customer information to the NSA and what is the lawful authority for doing so," said Barry Steinhardt, director of the technology and liberty project at the ACLU

Kevin J. Martin, the FCC chairman, said last month that the commission could not investigate reports of the companies' cooperation with the security agency because the agency's activities are classified.

Martin made the statement in response to a letter from Rep. Edward J. Markey, D-Mass., the ranking minority member of the House Subcommittee on Telecommunications and the Internet. At that time, however, the matter was not linked to AT&T's deal for BellSouth, which was announced in March.

Tamara Lipper, an FCC spokeswoman, declined to comment on the filing.

Selim Bingol, an AT&T spokesman, said, "We don't have anything to say without having seen the paperwork." He also reiterated AT&T's position that "we are vigorous protectors of our customers' privacy and when we're asked to help law enforcement agencies, we do so strictly within the law."

Claim is 'moot,' BellSouth says

BellSouth said the ACLU's request does not affect the company.

"The claims made in the USA Today story about BellSouth are false, so any assertions by the ACLU would be moot for BellSouth," said Jeff Battcher, a company spokesman. In its letter to the commission, the ACLU noted that BellSouth had denied participating in the surveillance program. But the group voiced concern about what would happen to BellSouth's customers if the company were acquired by AT&T.

"It would be a cruel irony if BellSouth had not participated in the program but as a result of this merger, BellSouth customers became unwilling surveillance targets," it said.

Separately, a group of smaller telecom players have also lodged objections with the FCC, arguing the AT&T-Bellsouth merger would hurt competition and the public interest.

The companies include Atlanta-based Cbeyond Communications, Grande Communications, NuVox Communications, Supra Telecom, Talk America, XO Communications and Xspedius Communications.