If you're trying to survive, your time horizon has to be fairly short.

A person who commands loyalty despite cutting jobs says things.

There are some economies of scale that can be eked out primarily in people costs. But the real payoff is too far into the future.

Merging with BellSouth would give AT&T that much greater market power and command over access networks. So I think it's a legitimate concern, considering that AT&T is already leaning toward premium pricing for companies that use their broadband networks to reach customers.

AT&T has had its eye on BellSouth for years.

Of course, this move poses tremendous challenges -- primarily integrating not one large company, but now two. It will be hard for AT&T to be other than inward focused over the next three years.