AT&T urged FCC to drop its suspended conditions for approval of c...

conditions because of recent decision by U.S. Appeals Court, D.C., striking down 30% cable ownership cap as unconstitutional. Thanks to “significant changes” in cable ownership limits mandated by court ruling, company said, “it would be appropriate for the Commission to eliminate the ownership condition and deem AT&T in compliance with the merger order.” At very least, AT&T contended, Commission should continue suspending conditions and move quickly “to reconsider the cable ownership and attribution rules on remand,” as court ordered. “This approach will fully protect the public interest and the Commission’s legitimate diversity and competition concerns by ensuring that AT&T, like all other cable companies, must comply with whatever ownership restrictions can be justified as truly necessary to address those concerns,” company said. “This course of action is dictated by the D.C. Circuit’s decision -- and by its subsequent order staying the Viacom-CBS divestiture condition.” AT&T asked FCC to dismiss petition filed by Consumers Union (CU) and other public interest groups that sought to force company to divest its 25.5% stake in Time Warner Entertainment (TWE), as required under suspended conditions. “As the recent orders of the D.C. Circuit make explicit, there is no basis for the Commission either to enter the order and require the divestiture that CU seeks or otherwise ’to proceed with [enforcement of] the [cable ownership] condition’ imposed” in merger order, AT&T said. Regulatory gambit came as AT&T and AOL Time Warner hired investment bankers to set value of former’s TWE’s stake, with AT&T picking Credit Suisse First Boston and AOL Time Warner selecting Bear Stearns & Co. Move also came as AT&T revealed in new SEC filing that it planned to allocate $28.4 billion of its $65 billion debt load to its cable unit, AT&T Broadband, as part of company’s planned breakup into 4 divisions.