Fergie's Tech Blog

Weigh conditions on phone deals, lawmakers say

Via Reuters.

Two U.S. senators on Friday recommended antitrust authorities and communications regulators consider attaching conditions on two large telecommunications acquisitions, including a requirement that they offer stand-alone high-speed Internet service.

Verizon Communications, the biggest U.S. telephone carrier, is acquiring MCI Inc. while SBC Communications Inc., the No. 2 carrier, is buying AT&T Corp.

Both deals need approval from the U.S. Justice Department and Federal Communications Commission.

Sens. Mike DeWine and Herb Kohl, the Republican chairman and ranking Democrat on the Senate Judiciary antitrust subcommittee, respectively, said they did not see the deals substantially lessening competition, but still suggested authorities weigh some conditions.

"Our examination of these transactions leads us to recommend, therefore, the consideration of certain merger conditions by your agencies in order to avoid the risk of injury to competition and consumers and to prevent anti-competitive barriers in the telecom market," the lawmakers said in a letter to the FCC and Justice Department.

posted by Fergie @ 7/31/2005 07:44:00 PM