AT&T’s proposed $2.7 billion acquisition of regional wireless firm Centennial Communications was approved conditionally on Tuesday by the Justice Department (DOJ), which said AT&T must comply with an antitrust consent decree that requires AT&T to divest overlapping assets in portions of two states for the deal to proceed. Last November, AT&T—the nation’s second largest wireless carrier with 80 million subscribers—agreed to purchase Centennial, a provider of mobile phone services to 1.1 million customers across six states, the U.S. Virgin Islands and Puerto Rico, for $944 million in cash and the assumption of $1.8 billion in debt. In a federal district court complaint that seeks to block the transaction, the DOJ’s antitrust division argued that the deal, as originally proposed, “would substantially lessen competition to the detriment of consumers” in areas where the parties’ assets overlap and would “likely result in higher prices, lower quality, and reduced network investments.” Under the proposed DOJ settlement, and to resolve competitive concerns, AT&T must divest overlapping wireless properties that cover eight cellular market areas (CMAs) in Mississippi and Louisiana. AT&T, which has accepted the DOJ’s terms, has already committed to sell five of the affected CMAs to Verizon Wireless, thus leaving AT&T three CMAs for which it must seek a buyer. FCC consent is still required for the transaction to proceed, and the chief of the FCC’s Wireless Telecommunications Bureau told reporters on Tuesday that FCC action is expected “very soon.” An AT&T official said, “we are pleased with the [DOJ’s] decision and see it as an important step toward closing our acquisition of Centennial.”