The Department of Justice (DoJ) has cleared AT&T's acquisition of Dobson Communications, on the condition that AT&T sells assets in seven markets as well as Dobson's Cellular One brand. The markets are in Kentucky, Missouri, Oklahoma, Pennsylvania and Texas.
The DoJ has concluded that in these seven areas, AT&T already has a market presence and acquiring Dobson's interests in those areas could eliminate local competition.
"The required divestitures will preserve competition for residents in rural areas…and ensure that these consumers continue to enjoy the benefits of competition, such as lower prices, and higher quality," said Thomas O. Barnett, assistant attorney general in charge of the Justice Department's antitrust division, in a statement.
AT&T has agreed to the DoJ's conditions.
The acquisition still requires approval from the FCC. Chairman Kevin Martin has proposed another set of conditions on the sale, requiring AT&T to cap the amount of federal subsidies it receives in order to deploy and maintain cellular service in rural areas. The commission set the same conditions on its approval, last week, of the private equity buyout of Alltel Wireless.