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The merger of AT&T and BellSouth gives Cingular Wireless, the largest wireless carrier in the U.S., one owner in AT&T and paves the way for the formation of a communications company that offers services in 22 states. The consolidation, which was approved by the Federal Communications Commission on December 29, 2006, will allow Cingular and AT&T to offer an array of telecom services, including wire line, long distance, Internet, broadband, and data networking, as well as wireless voice and data services. Business services will include integrated management services such as managed security, remote backup and storage, and wired-wireless integration. The combined Cingular and AT&T entity will be able to provide a wider range of services, but the positive impact of the change to enterprise users remains to be seen. The focus is on consumers, and it is highly doubtful that enterprise users will truly benefit. In addition, the consolidation diminishes competition in some markets, mainly telecommunications. The competition will be reduced to two players as a result of the merger. A drop in prices and a decline in the quality of service are also expected. One the positive side, the merger will provide more options to small players. AT&T is looking to expand its offerings to small businesses, which the company believes are fueling the U.S. economy.
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