TELECOMMUNICATIONS CARRIERS Rumors Swirl, But Would A Bell Even Want AT&T?(INTERNET & TECHNOLOGY)

Byline: Reinhardt Krause

Will a regional Bell operating company buy AT&T Corp.?

Pundits are actively speculating that this will be the case. But consider remarks of a year ago by Ivan Seidenberg, the chief executive of Verizon Communications Inc.

When asked if Verizon were interested in buying AT&T, the No. 1 long-distance firm, Seidenberg said there was no need. Verizon would end up with AT&T's customers without paying for them, he told reporters.

Indeed, in the few states where Verizon offers long-distance services, it has quickly grabbed residential market share.

Still, the Bells haven't yet taken large corporate customers away from AT&T and other long-distance firms. That, some analysts say, might be the one big reason they'd consider buying or merging with AT&T.

"The Bells would like to buy one-fourth or one-third of AT&T to address the big-business market," said Scott Cleland, chief executive of research firm Precursor Group in Washington, D.C. "They're not interested in the other two-thirds, which is a rapidly depreciating asset."