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Telecom Mega-Mergers Clear DOJ Antitrust ReviewBy ROBERT LIU TMCnet Wireless and Technology Columnist
The Justice Department has approved the mega-mergers of SBC Communications with AT&T and Verizon’s bid to acquire MCI Communications without any significant conditions such as the divestiture of key assets, the two regional
The decision comes one day before the Federal Communications Commission will hold an open meeting to discuss the impact of SBC/AT&T and Verizon’s $8.5 billion bid to acquire MCI on wireline competition. While response to SBC’s overtures have been relatively benign, Verizon had without a doubt many more bumps in the proverbial road.
First it had to fend off Qwest Communications in a bidding war for the assets of MCI. And since Qwest has back off, competitors such as telecom carrier services company XO Communications and others have been hoping to force Verizon into key concessions in order for them to complete the deal.
“We appreciate the hard work of the Department of Justice staff in bringing this merger to resolution,” said John Thorne, Verizon senior vice president and deputy general counsel. “The consent decree will result in no disruption to MCI customers. We are eager to begin offering the benefits of this new combination to customers as soon as possible.”
As part of one condition associated with the Verizon/MCI deal, Justice Department officials filed a consent decree with a federal court that stipulates Verizon must lease dark (unused) fiber connections to 356 buildings in several states in its East Coast footprint. Fiber currently being used by MCI to serve its customers will not be affected.
Shareholders and European regulators have already cleared the Verizon/MCI deal.
SBC and AT&T also have agreed to provide access to certain buildings throughout its 13-state footprint where the two companies are the only providers of dark fiber to those buildings. Since the two companies announced plans to merge in January, approvals have been received from 33 of 36 states with clearance processes and from the
“After a tough but fair process, we are pleased to have reached this major milestone in the approvals of our merger,” said Jim Cicconi, AT&T executive vice president and general counsel. “We expect to gain FCC approval shortly, secure approval from the remaining states and, after that, to close the merger as quickly as possible.” ---- Robert Liu is Executive Editor at TMCnet. Previously, he was Executive Editor at Jupitermedia and has also written for CNN, A&E, Dow Jones and Bloomberg. For more articles, please visit Robert Liu's columnist page.
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