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.

A person who commands loyalty despite cutting jobs says things.

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

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.