In May 1998, Ameritech announced its intent to merge with
SBC Communications for $62 billion. This brought great concern to Federal and state regulators, who in turn did not approve the merger until SBC and Ameritech agreed to several conditions to ensure adequate competition. Most notably, regulators required: • that the merged company offer local phone service in thirty markets outside of its home territory within thirty months of the merger (i.e. by April 2002) or pay a $1.18B penalty • and that
Ameritech Cellular assets in Chicago be sold to
GTE in 1999, which later merged with
Bell Atlantic to form
Verizon in June 2000. Since SBC already had a majority stake in a large mobile provider (
Cellular One), the merged company, if it were to operate Ameritech Cellular and Cellular One both in the same market, would have wielded too much market power. On October 6, 1999, the
Federal Communications Commission (FCC) approved the merger between SBC and Ameritech, then the two companies officially merged on October 8, 1999. Prior to the merger, Ameritech's Chairman and CEO was
Richard Notebaert, who later (in 2002) became CEO of competitor
Qwest.
The end of the Ameritech name On January 15, 2003, SBC Communications changed its
d.b.a. names, changed the legal name of Ameritech Corp. to
SBC Teleholdings, Inc., which began doing business as
SBC Midwest. On January 15, 2006, d.b.a names were again changed to align with SBC's assumption of the AT&T brand identity following its acquisition of AT&T Corp. the previous year, and Ameritech was again renamed, becoming
AT&T Teleholdings, Inc. and began doing business as
AT&T Midwest. Several Ameritech subsidiaries remain legally named "Ameritech", such as Ameritech Advanced Services; however, they do business as "AT&T Advanced Solutions". In 2006, the holding companies
Pacific Telesis and
Southern New England Telecommunications were legally merged into AT&T Teleholdings. The company then became a holding company for
Pacific Bell (and its subsidiary
Nevada Bell) and
Southern New England Telephone. ==See also==