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Telecom Mergers Get Support ; Fcc Chairman to Back Sbc and Verizon Deals Without Requiring Companies to Sell Off Any Assets

Posted on: Tuesday, 11 October 2005, 06:00 CDT

By The Associated Press

The top federal communications regulator wants two multibillion- dollar telecommunications mergers approved without requiring the companies to sell off assets.

The deals are SBC Communications Inc.'s $16 billion acquisition of AT&T and Verizon Communications Inc.'s $8.5 billion offer for Virginia-based MCI Inc.

Kevin Martin, chairman of the Federal Communications Commission, planned to send his fellow commissioners proposals outlining his reasons for seeking approval, a person close to the matter said yesterday.

This person was authorized to speak about the proposals only on the condition of anonymity because the petitions have not been made public.

If Martin gets at least two of the three other commissioners to agree, the mergers could be approved at the commission's monthly meeting Oct. 28.

The Justice Department's antitrust division also must approve the deals, and it is the agency that would go to court if there were any government effort to force some assets to be divested. The department is not bound by any decision the FCC reaches, but the commission's position would have considerable influence on the final ruling.

A commission spokesman declined to comment.

SBC and Verizon already are the largest regional phone companies. The mergers would enhance their base of business customers and expand their national and international presence.

Critics say the mergers will lead to fewer choices for consumers and higher prices, a claim SBC and Verizon dispute.

The offices of the three other FCC commissioners -- Kathleen Abernathy, Michael Copps and Jonathan Adelstein -- declined to comment on the proposals by the agency's chairman.

European Union regulators approved the Verizon-MCI merger yesterday, saying the deal would not harm competition in Europe.

In Virginia on Thursday, the State Corporation Commission said that if the Verizon-MCI merger gets the federal nod, the transaction can include MCI's operating unit in the state. However, MCI will be required to continue offering certain services at pre-merger rates and with pre-merger conditions.

Source: Richmond Times - Dispatch

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