Qwest Asks FCC to Block SBC-AT&T Merger; CWA Chimes In

A release just arrived at TMCnet announcing that Qwest is filing comments today with the FCC in opposition to the pending merger of SBC and AT&T. The release is available at:

Qwest Communications Files Comments at FCC to Block SBC-AT&T Merger; Divestitures and Conditions Necessary to Protect Consumers and Businesses

Qwest calls this issue "the most significant matter to come before the FCC since the divestiture of the Bell System" and says that the merger would "constitute a significant setback to federal and state policymakers' efforts to bring about competition in the telecommunications industry" and would result in "higher prices, reduced service quality and less choice and innovation."

The release quotes Steve Davis, Qwest senior vice president of public policy: "SBC proposes to acquire its largest competitor and greatest strategic threat. It is inconceivable that this transaction could be in the public interest without the imposition of significant conditions and required divestitures."

The release goes on to say:

"To protect the public, it is essential that if the merger application is not denied outright, then the FCC must condition its approval, at a minimum, on significant divestitures of facilities and other related overlapping operations in SBC's 13-state operating territory. In addition, because the proposed merged company will benefit from the elimination of AT&T as a competitor -- and benefit from the elimination of other competitors' access to AT&T's wholesale services and access facilities -- other significant conditions must be imposed in order to attempt to level the playing field."

On the heels of the Qwest release, an opposing announcement arrived from the Communications Workers of America, available at:

SBC-AT&T Merger Merits Quick Approval, CWA Tells FCC

According to CWA, SBC-AT&T merger will:

+ Create a "premier U.S. communications company," with the ability to "expand the delivery of advanced technologies, services and features to all classes of customers."

+ "Create a company with the resources and end-to-end network essential in the deployment of advanced next-generation Internet-Protocol enabled networks and services."

+ Assure that "national security will be safeguarded, by ensuring that AT&T, on which the government heavily depends for national security and other needs, will be a strong American company."

+ "Enhance, not reduce, competition by combining the different strengths of the two merger partners -- AT&T's global network and research innovation and SBC's financial strength and local exchange, broadband and wireless capabilities."

+ "Provide employees at both companies with the opportunity to share in the growth of the merged entity rather than the job loss that has been the fate of all too many AT&T employees in recent years."

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AB -- 4/25/05