Sound of F.C.C. silence in a big merger
Article Abstract:
The Federal Communications Commission's lack of reaction to the announced merger of the Baby Bell, US West Inc., and international long distance company, Global Crossing Ltd., suggests that the efforts of other local phone service providers to enter the long distance market may meet with less resistance from regulators than in the past. Commission Chairman William E. Kennard's comments to the National Consumers League in Washington indicate the agency is unlikely to intervene. Former Chairman Reed E. Hundt, who blocked similar efforts by other Baby Bells, pointed out that U S West is the smallest and so its merger should not be subject to as strict oversight. One hurdle is Global Crossing Ltd.'s pending acquisition of Frontier Corp., a long distance company. Under the terms of the Telecommunications Act of 1996, local providers like U S West are prohibited from offering long distance service to their customers until significant competition can be shown to exist within their local service areas. The merged company could circumvent this by selling Frontier's customers within U S Wests region to another provider.
Publication Name: The New York Times
Subject: Business, general
ISSN: 0362-4331
Year: 1999
User Contributions:
Comment about this article or add new information about this topic:
Local Bells see a bright side in the AT&T deal
Article Abstract:
The Baby Bells are expressing a positive attitude about AT&T's acquisition of TCI, despite the fact that stock in each of the five local Bell companies fell by an average of approximately 4%, reaching a total of close to $11 billion in its combined market value. The Bells see the acquisition in a positive light because they believe it will eventually result in their controling the $80 billion long-distance telephone industry. Analyst are supporting the acquisition as well, claiming it is clearly in the direction of what the FCC wanted in regards to the 1996 Telecommunications Act. The Bells believe that having competition from a cable-based phone system would factor into their favor, when they apply for permission to sell long-distance services from the FCC.
Publication Name: The New York Times
Subject: Business, general
ISSN: 0362-4331
Year: 1998
User Contributions:
Comment about this article or add new information about this topic:
- Abstracts: Chief of Hughes again emerges as a top candidate to head AT&T. AT&T, reversing strategy, announces a plan to split into 3 separate companies: 8,500 jobs to go: new phone unit alone would still rank as No. 12 in the U.S
- Abstracts: FCC seems to back long-distance firms over regional Bells on access charges. Telecommunications bill faces a vote today
- Abstracts: Sale of Bellcore reported to big research company; 7 Bells cut loose a jointly owned entity. Rush to wed raises issues on freeing of Baby Bells
- Abstracts: British phone concerns end merger talks; attempts to create a global telecommunications giant collapses. British deal to buy MCI is in disarray
- Abstracts: AOL hits top of on-line hill with CompuServe deal; now observers wait to see if market dominance can translate into dollars