AT&T plans to buy BellSouth for $67 billion in what amounts to an attack against its low-cost rivals in the battle to win over phone, wireless, television and internet customers, reports the New York Times. The country's largest phone company is attempting to become a one-stop shop for all communication needs. Regulators, consumer groups and competitors will undoubtedly have something to say about the deal. The result of the merger might look a lot like the AT&T monopoly broken up some two decades ago. Only three Baby Bells would remain: AT&T (formerly SBC); Qwest; and Verizon.

AT&T hopes to save billions in advertising by merely consolidating AT&T, BellSouth and Cingular marketing under one brand, writes the Associated Press.

A combined AT&T and BellSouth would be the country's largest supplier of broadband (DSL) internet access with 9.8 million lines, more than current leader Comcast's 8.5 million broadband subscribers. It would also be one of the largest backbone internet carriers.

Along with the other major backbone carrier, Verizon, it would also likely push for an internet "toll lane" that in effect charges content providers for speedy delivery that avoids traffic jams.