The Jeff Pulver Blog: FCC Approves SBC/AT&T and Verizon/MCI Mergers:

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October 31, 2005

FCC Approves SBC/AT&T and Verizon/MCI Mergers:

The FCC today approved the SBC/AT&T and Verizon/MCI Mergers. The FCC press release is available at:

http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-261936A1.doc

The Commissioners separate statements are available at:

I did not actively participate in the FCC's merger review, primarily because I have mixed feelings about using the merger process to extract concessions from particular parties, rather than applying broader, uniform rules equally across all similarly situated entities.

I, however, was at a loss (particularly in the wake of the FCC's tepid adoption of Net Freedom/Consumer Empowerment principles and the simultaneous abandonment of Title II to ensure Net Freedom) as to what vehicles existed (and who would have the stomach to ensure) the most positive regulatory environment for the communications industry, for carriers, for application providers, for consumers, for innovators, and for entrepreneurs.

I wanted to see a meaningful assurance of consumer empowerment and net freedoms to be applied equally across all delivery platforms. I, however, did not like the prospect that merger conditions might mean disparate treatment of different providers. I also don't generally support the concept of government extortion of private enterprise. But, I, at least, was at a loss as to how to ensure user control over the Internet experience without some government oversight.

Obviously there will be scads of accounts and analyses in the trades and mainstream press. The only thing I wanted to point out to the IP-based communications community is that the FCC (apparently at the insistence of Commissioner Copps) did take the opportunity to compel the merged entities to submit to mandatory enforcement of Net Freedom/User Empowerment rules. I had been critical of the FCC when it adopted mere principles without any meaningful enforcement mechanism. At least with regard to SBC and Verizon, Net Freedom is enforceable (at least for the next two years (after which time, all bets are off)).

- The applicants committed for a period of two years to conduct business in a way that comports with the Commission's Internet policy statement issued in September.

The other conditions of most compelling interest to Internet-based communications users and providers are the following:

- The applicants committed, for a period of three years, to maintain settlement-free peering arrangements with at least as many providers of Internet backbone services as they did in combination on the Merger Closing Dates.

- The applicants committed to provide, within 12 months of the Merger Closing Dates, DSL service to in-region customers without requiring them to also purchase circuit-switched voice telephone service. The companies will make the offering for two years from the time it is made available in a particular state.

The FCC also compelled some obligations on the entities to provide special access. Frankly, I think this might prove to be an underrated benefit to many unaffiliated IP-based communications providers, who often obtain access like any other end user (rather than as CLECs). It would be unfortunate if SBC or Verizon could discriminate between two end-users - one that is an ordinary business and one that provides Internet-based communications services.

The big caveat -- there do not appear to be any pricing constraints. That might prove to be a pretty big loop hole.

The complete list of voluntary commitments is available in the FCC press release at:

http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-261936A1.doc

Tags: voip, fcc, net freedom

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Posted by jeff on October 31, 2005 05:54 PM | Permalink

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Posted by: 升降机 at July 14, 2008 06:08 AM

The FCC's granting of the mergers was nothing more than a Band-Aid for a fatal injury... the basis of the order is a facade to make it look like they (FCC) actually did something, of which all of the smoke and mirrors could not hide Martin's rubber stamping of the mergers.

The conditions should have gone much further and deeper, as both Copps and Adelstein wrote in their
remarks, for which this would have been a good time to make up for bad mistakes over the past 10 years.

Posted by: Frank Muto at November 1, 2005 09:55 AM

October 31, 2005

FCC Approves SBC/AT&T and Verizon/MCI Mergers:

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