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The median price that Cisco paid for its many acquisitions over the past few years is about $75 million, according to Kenneth Muth, a senior research analyst who covers telecommunications equipment companies for Robert W. Baird.
This would be done under Title II of the Communications Act, which already covers telecommunications services but since 2002 has not covered "information services" – data travelling over the internet.
"Not only would we expect AT&T to spend several billions of dollars to upgrade their network, but this alliance could increase pressures on their competitors to do the same," said Michael Ching, an analyst who covers telecommunications equipment companies at Merrill Lynch.
Mr. Spitzer said that the current law -- which covers telecommunications services but not information services -- has not kept pace as the two areas have been blurred with the advent of text messages and picture messages on cellphones, and of phonelike services that communicate via the Internet instead of old copper wires.
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These sites cover telecommunications, marketing, media, digital entertainment and agriculture.
But Mr. Johnson, who covered telecommunications companies, failed to disclose that he stood to gain millions of dollars from the transactions, the S.E.C. contended.
The new version of the CFPA, for instance, would not cover telecommunications companies or real estate brokerages.
The new version would not cover telecommunications companies or real estate brokerages or have the power to require financial institutions to offer "plain vanilla" products and services.
"Everyone was frozen, waiting for the iPhone," said Philip Cusick, an analyst with J. P. Morgan who covers the telecommunications industry.
"There's a huge amount at stake here," said Craig Moffett, an analyst at Sanford C. Bernstein, who covers the telecommunications industry.
"The existing iDEN technology does not have a clear path to a pure third-generation network," said Dmitry Khaykin, who covers the telecommunications industry for Salomon Brothers Asset Management.
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