TMCnet News
Verizon-MCI Merger Clears Shareholders, RegulatorsEuropean Commission Approves Verizon-MCI Merger
By TED GLANZER
TMCnet Communications and Broadband Columnist
The Verizon Communications-MCI, Inc. proposed merger cleared its second significant hurdle in as many days when the European Commission approved the multi-billion dollar telecom deal on Friday.
Yesterday, MCI’s shareholders overwhelmingly approved the $8.6 billion merger.
Additionally, the Virginia State Corporation Commission (SCC) on Thursday approved, with restrictions, the portion of the merger in which Verizon will acquire MCImetro of Virginia.
Specifically, the SCC is requiring MCI to continue offering certain intrastate and interstate wholesale services at pre-merger rates, terms, and conditions.
The companies must still obtain federal (FCC and Justice Department) and state approvals, though the FCC has set an internal Oct. 13 deadline to vote on both the Verizon-MCI and SCB-AT&T mergers.
According to a statement released by Verizon and MCI, the merger should be finalized by the end of this year or early 2006.
The deal is being challenged by, among others, Qwest Communications, which argues that the deal will create unprecedented, harmful market concentration. Qwest was unsuccessful in its attempt to acquire MCI, even though its bid was higher than Verizon’s.
Recently, CLECs have changed their approach to the mergers, lobbying for merger restrictions rather than outright rejection of the two mega deals.
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Ted Glanzer is assistant editor for TMCnet. For more articles by Ted Glanzer, please visit:
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