WASHINGTON -- The U.S. Justice Department has conditionally approved Cingular Wireless's acquisition of AT&T Wireless, Cingular said Monday.
The merger would cut the number of U.S. wireless providers from six to five. It would also create the largest U.S. wireless provider with about 45 million customers, bumping Verizon Wireless with its roughly 40 million subscribers from the top spot.
For final approval, Cingular has committed to sell wireless licenses in 13 markets to address regulatory concerns about high wireless market concentration, CBSMarketwatch.com reports.
"Today's decision by the Department of Justice is an important step in the approval process," Stan Sigman, president and chief executive of Cingular Wireless, said in a statement. Cingular is owned by San Antonio, Texas-based SBC Communications and Atlanta-based BellSouth.
Cingular officials continue to expect the transaction to close later this quarter.
The combined entity will have licenses to operate wireless service in 49 of 50 states, and will serve the top 100 metropolitan areas after the merger is completed.
