Close
  • Latest News
  • Artificial Intelligence
  • Big Data and Analytics
  • Cloud
  • Networking
  • Cybersecurity
  • Applications
  • IT Management
  • Storage
  • Sponsored
  • Mobile
  • Small Business
  • Development
  • Database
  • Servers
  • Android
  • Apple
  • Innovation
  • Blogs
  • PC Hardware
  • Reviews
  • Search Engines
  • Virtualization
Read Down
Sign in
Close
Welcome!Log into your account
Forgot your password?
Read Down
Password recovery
Recover your password
Close
Search
Logo
Logo
  • Latest News
  • Artificial Intelligence
  • Big Data and Analytics
  • Cloud
  • Networking
  • Cybersecurity
  • Applications
  • IT Management
  • Storage
  • Sponsored
  • Mobile
  • Small Business
  • Development
  • Database
  • Servers
  • Android
  • Apple
  • Innovation
  • Blogs
  • PC Hardware
  • Reviews
  • Search Engines
  • Virtualization
More
    Home Latest News
    • Networking

    FCC Approves Telco Mergers

    By
    Caron Carlson
    -
    October 31, 2005
    Share
    Facebook
    Twitter
    Linkedin

      The Federal Communications Commission on Monday ordered several requirements to protect competition following Verizon Communications Inc.s planned purchase of MCI Inc. and SBC Communications Inc.s planned purchase of AT&T Corp.

      The Bell companies must provide standalone DSL service for two years, retain the rates they charge businesses for high-capacity communications for two years and continue to provide “peering” with other Internet service providers for three years.

      The companies are in such a hurry to complete their acquisitions of the two largest long distance carriers, that they volunteered conditions which even the chairman of the FCC thinks are unnecessary.

      Not one of the countrys four top officials in charge of telecommunications was entirely satisfied with the arrangement. FCC Chairman Kevin Martin said that divestiture conditions set forth by the Department of Justice last week adequately addressed concerns about market concentration.

      “I do not believe that all of these conditions imposed today are necessary,” Martin said. “In isolation, I think its clear, that we all would have done this differently.”

      /zimages/4/28571.gifThe FCCs master plan: world domination? Click here to read more.

      Nonetheless, the FCC chairman said, the mergers will spur the Bells to invest in fiber optic networks, encourage new and advanced services and create strong, global carriers.

      However, Martins Democratic colleagues, Commissioners Michael Copps and Jonathan Adelstein, argued that the conditions may not go far enough to prevent the rising prices and diminishing choices that could result from industry consolidation.

      Both noted that they had previously cautioned against the potential for reduced competition in objecting to earlier commission decisions.

      “In a sense, these mergers can also be seen as an epitaph for the competition that many of us thought we would enjoy as a result of the Telecommunications Act of 1996,” Copps said.

      “Thanks in part to our actions, the wireline market became increasingly the province of the few. More than half of the wireless market came under the control of incumbent wireline providers.”

      The more concentrated the service providers become, the greater their ability to block IP routes, Copps warned:

      “It may be that we are tacking back in time toward an era when concentrated power dictated what limited services we could and could not have and we had no recourse but to accept what was offered.”

      Commissioner Adelstein said that he also would have preferred additional and more rigorous safeguards for competition. The business market, in particular, will face fewer choices.

      “For American business customers, these mega-combinations may present the greatest risks,” Adelstein said.

      “The Commission concludes that there is still a high level of concentration in the enterprise market in most areas of the country today.”

      /zimages/4/28571.gifClick here to read about VOIP vendors sparring with the FCC over wiretaps.

      AT&T and MCI are two of the largest sources for business offerings, and their presence in the marketplace alone results in lower wholesale prices, Adelstein said.

      To prevent anti-competitive pricing, more of the four carriers overlapping facilities should be divested than those set forth in the Justice Departments conditional settlement last week.

      “I am not convinced that the relatively minor number of facilities where [Verizon and SBC] are required to lease high-capacity lines is sufficient by itself to remedy this significant loss of actual and potential competition,” he said.

      “The Department of Justices action leaves 99.9 percent of commercial buildings in SBC and Verizon territory wholly unprotected from the loss of competition that AT&T and MCI brought to bear.”

      /zimages/4/28571.gif Check out eWEEK.coms for the latest news, views and analysis on voice over IP and telephony.

      Caron Carlson
      Get the Free Newsletter!
      Subscribe to Daily Tech Insider for top news, trends & analysis
      This email address is invalid.
      Get the Free Newsletter!
      Subscribe to Daily Tech Insider for top news, trends & analysis
      This email address is invalid.

      MOST POPULAR ARTICLES

      Latest News

      Zeus Kerravala on Networking: Multicloud, 5G, and...

      James Maguire - December 16, 2022 0
      I spoke with Zeus Kerravala, industry analyst at ZK Research, about the rapid changes in enterprise networking, as tech advances and digital transformation prompt...
      Read more
      Applications

      Datadog President Amit Agarwal on Trends in...

      James Maguire - November 11, 2022 0
      I spoke with Amit Agarwal, President of Datadog, about infrastructure observability, from current trends to key challenges to the future of this rapidly growing...
      Read more
      IT Management

      Intuit’s Nhung Ho on AI for the...

      James Maguire - May 13, 2022 0
      I spoke with Nhung Ho, Vice President of AI at Intuit, about adoption of AI in the small and medium-sized business market, and how...
      Read more
      Applications

      Kyndryl’s Nicolas Sekkaki on Handling AI and...

      James Maguire - November 9, 2022 0
      I spoke with Nicolas Sekkaki, Group Practice Leader for Applications, Data and AI at Kyndryl, about how companies can boost both their AI and...
      Read more
      Cloud

      IGEL CEO Jed Ayres on Edge and...

      James Maguire - June 14, 2022 0
      I spoke with Jed Ayres, CEO of IGEL, about the endpoint sector, and an open source OS for the cloud; we also spoke about...
      Read more
      Logo

      eWeek has the latest technology news and analysis, buying guides, and product reviews for IT professionals and technology buyers. The site’s focus is on innovative solutions and covering in-depth technical content. eWeek stays on the cutting edge of technology news and IT trends through interviews and expert analysis. Gain insight from top innovators and thought leaders in the fields of IT, business, enterprise software, startups, and more.

      Facebook
      Linkedin
      RSS
      Twitter
      Youtube

      Advertisers

      Advertise with TechnologyAdvice on eWeek and our other IT-focused platforms.

      Advertise with Us

      Menu

      • About eWeek
      • Subscribe to our Newsletter
      • Latest News

      Our Brands

      • Privacy Policy
      • Terms
      • About
      • Contact
      • Advertise
      • Sitemap
      • California – Do Not Sell My Information

      Property of TechnologyAdvice.
      © 2022 TechnologyAdvice. All Rights Reserved

      Advertiser Disclosure: Some of the products that appear on this site are from companies from which TechnologyAdvice receives compensation. This compensation may impact how and where products appear on this site including, for example, the order in which they appear. TechnologyAdvice does not include all companies or all types of products available in the marketplace.

      ×