The New York Public Service Commission on Wednesday voted unanimously to approve the merger of SBC Communications and AT&T, as FCC and Department of Justice regulators continue to mull over the merger.

“This merger between SBC and AT&T marks the convergence of two telecommunications companies with complementary strengths, product offerings, and customer bases,” said Commission Chairman William M. Flynn. “More importantly, the merger represents a substantial investment in New York’s dynamic, competitive market by a major telecommunications company with approximately $80 billion in market capitalization. This merger will enhance the ability of SBC and AT&T to compete in New York, and it should spur continued growth and technological innovation in an increasingly competitive telecommunications environment in New York.”

SBC purchased AT&T primarily for its business customers and network. This is the same reason Verizon is merging with MCI.

Federal regulators are trying to decide which assets the companies will have to divest, or sell off, for the merger to not be considered anticompetitive and to gain approval. Typically these will be portions of the companies’ networks which overlap each other.

Analysts believe that smaller firms such as Level 3 and Qwest may purchase these assets.

But Qwest is trying to derail the SBC/AT&T merger, claiming that SBC is stifling competition for medium to large business customers, according to the Washington Post.