MCI winner will walk regulatory wire

Article Abstract:

Government regulators could take at least one year evaluating WorldCom and GTE bids to merge with MCI. Many experts believe federal and state regulators would approve either proposal. Lack of competition in local-phone, long distance and Internet businesses raise serious issues for each bid. Justice Department and FCC antitrust enforcers are facing some unprecedented issues in both deals. State regulators may slightly favor WorldCom, because state regulators tend to go easier on long-distance companies, because they have no monopolies. WorldCom holds about a 7% stake in the long-distance market, compared to MCI's approximately 17%. GTE owns monopolies in 28 states, and many regulators consider such a structure as subsidized assets that have benefited from state protections. California may present a problem for GTE, because it alone requires merging utilities with more than $500 million in annual state sales to share 50% of their expected 'synergy' savings with customers.

WCOM, MCI Inc., Company Acquisition/Merger

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Phone companies find an ear at FTC; proposed merger of Turner and Time Warner echo fears raised by agency

Article Abstract:

The Federal Trade Commission (FTC) is interested in the complaints of telephone companies with respect to the proposed $7.5 billion merger of Time Warner Inc and Turner Broadcasting System Inc. The phone companies fear the merger would interfere with their beginning efforts to utilize their networks to enter the cable business. These companies would need quality content to distribute over their new cable offerings and fear that this merger would limit the availability of popular video programs. The phone companies are particularly concerned with a provision that grants Tele-Communications cable systems, a 21% owner of Turner Broadcasting, the right to receive Turner programming at discounted prices for 20 years, which would place competitors at a severe disadvantage. The complaints reinforce the FTC's concerns about the new company which would essentially have about 40% of the US cable market.

Cases, Telecommunications regulations, Time Warner Inc., TWX, United States. Federal Trade Commission, Government communications regulation, Turner Broadcasting System Inc., TBS

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British Telecom-MCI deal faces delay; U.S. regulators want long, hard look at purchase

Article Abstract:

US regulators are placing the British Telecommunications PLC purchase of MCI Communications on hold while they conduct an extensive investigation of the $20.88 billion deal. The regulators are concerned with the terms and conditions involved in approving the deal, which could establish the ground rules of future acquisitions of US telecommunications companies by foreign companies. Regulators are focusing on the question of how much foreign investment should be allowed in US companies, as well as how deeply US telecommunications companies should expand into foreign markets. The investigation will be closely watched by World Trade Organization members, who are attempting to reach a global agreement to open worldwide telecommunications markets, as well as countries that are not currently supporting the open-market concept.

Company acquisition/merger, British Telecommunications PLC, Investigations, International communication, Foreign Investment, Investigation, International communications

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