prepaid phone card lawsuit
prepaid phone card lawsuit
WASHINGTON (MarketWatch) -- BellSouth Corp. (BLS) said the company and merger partner AT&T Inc. (T) agreed in April to stay a lawsuit related to unpaid access charges associated with AT&T's prepaid calling cards and its "IP in the middle" services that use Internet protocol technology.
As reported in previous filings with the Securities and Exchange Commission, the Atlanta telecommunications and broadband services provider filed a lawsuit against AT&T in May 2005 to recover some access charges. The lawsuit was filed in the U.S. District Court for the Northern District of Georgia.
BellSouth said in its quarterly report filed Thursday with the SEC that the lawsuit will be stayed until the earlier of 12 months or the completion or termination of the merger agreement between the company and AT&T.
In March, BellSouth and AT&T announced plans for AT&T to acquire BellSouth. BellSouth shareholders will receive 1.325 shares of AT&T common stock for each BellSouth common share.
According to previous SEC filings, BellSouth's lawsuit against AT&T followed two separate rulings by the Federal Communications Commission, one in April 2004 concerning "IP in the middle" services and one in February 2005 concerning prepaid card services, that each service was a telecommunications service subject to access charges.
AT&T estimated in securities filings that it had "saved" $340 million in access charges on its prepaid card services and $250 million in access charges on its "IP in the middle" services.
BellSouth said it believes some of the improperly avoided access charges should have been paid to BellSouth for the use of its network.
The company said AT&T appealed the FCC's decision related to prepaid card services to Court of Appeals for the D.C. Circuit, which has heard oral argument but hasn't issued a decision.
BellSouth said if the lawsuit in Georgia progresses, it expects to obtain information from AT&T and other sources that will determine the amount of BellSouth access charges that AT&T avoided.
The company's shares closed Wednesday at $33.63 each, while AT&T's shares closed at $25.99 each
prepaid phone card lawsuit
WASHINGTON (MarketWatch) -- BellSouth Corp. (BLS) said the company and merger partner AT&T Inc. (T) agreed in April to stay a lawsuit related to unpaid access charges associated with AT&T's prepaid calling cards and its "IP in the middle" services that use Internet protocol technology.
As reported in previous filings with the Securities and Exchange Commission, the Atlanta telecommunications and broadband services provider filed a lawsuit against AT&T in May 2005 to recover some access charges. The lawsuit was filed in the U.S. District Court for the Northern District of Georgia.
BellSouth said in its quarterly report filed Thursday with the SEC that the lawsuit will be stayed until the earlier of 12 months or the completion or termination of the merger agreement between the company and AT&T.
In March, BellSouth and AT&T announced plans for AT&T to acquire BellSouth. BellSouth shareholders will receive 1.325 shares of AT&T common stock for each BellSouth common share.
According to previous SEC filings, BellSouth's lawsuit against AT&T followed two separate rulings by the Federal Communications Commission, one in April 2004 concerning "IP in the middle" services and one in February 2005 concerning prepaid card services, that each service was a telecommunications service subject to access charges.
AT&T estimated in securities filings that it had "saved" $340 million in access charges on its prepaid card services and $250 million in access charges on its "IP in the middle" services.
BellSouth said it believes some of the improperly avoided access charges should have been paid to BellSouth for the use of its network.
The company said AT&T appealed the FCC's decision related to prepaid card services to Court of Appeals for the D.C. Circuit, which has heard oral argument but hasn't issued a decision.
BellSouth said if the lawsuit in Georgia progresses, it expects to obtain information from AT&T and other sources that will determine the amount of BellSouth access charges that AT&T avoided.
The company's shares closed Wednesday at $33.63 each, while AT&T's shares closed at $25.99 each
prepaid phone card lawsuit
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