Verizon and SBC Own The Phones
On Monday, the FCC approved two of the latest mega-mergers that will shake up the telecom industry: Verizon's $8.45 billion joining with MCI, and then the big SBC $16 billion acquisition of AT&T. The U.S. government agency has been quoted as saying that consumers would benefit from both mergers.
Among the positives are the increased performance and reliability of what the government regulator called "complementary networks." The FCC also noted that both newly merged companies would remain U.S.-owned as another point in favor of the deals.
The FCC found that the concerns interest groups brought to the table, such as the two companies controlling a large portion of Internet access for Americans, were unfounded. As a strict stipulation, both SBC -- soon to be known as AT&T -- and Verizon must offer DSL access without the purchase of a phone line for two years after the agreement. Pricing caps must also be put into place on certain network services for the same period.
In addition, the two companies agreed to Internet neutrality rules to ensure that third parties could peer with them without paying exhorbanent fees, and prevent disagreements such as the one between Level 3 and Cogent earlier this month.
Both SBC and Verizon were satisified with Monday's decision.
Via: [betanews]
4:08 AM
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