FCC approves Verizon-MCI, SBC-AT&T mergers

The Federal Communications Commission on Monday approved (PDF) the mergers of Verizon with MCI and SBC with AT&T, with only minimal conditions applied to the mergers.

The FCC was scheduled to approve the mergers on Friday, but kept rescheduling (PDF) its monthly meeting as negotiations stalled. Commission Chairman Kevin Martin, (PDF) who has a reputation for consensus-building, had to find the compromise points to get the group’s two Democrats, Jonathan Adelstein (PDF) and Michael Copps, (PDF) to give their “yes” votes. Adelstein and Copps wanted more conditions than what the FCC and Department of Justice ultimately imposed, while Martin and Republican commissioner Kathleen Abernathy (PDF) did not want any riders placed on the agreements.

The companies involved in the mergers also agreed to the terms, which require the combined companies to offer naked DSL; abide by network neutrality rules the FCC adopted earlier this year; promise not to block Internet traffic from accessing VoIP services and exchanging videos; and maintain special access and unbundled network element pricing. — Phone+ Magazine

The naked DSL requirement is an important one. Naked DSL is the provision of DSL service over a regular phone line, without corresponding (landline) dial tone telephone service. It means that consumers and small businesses can provision a VoIP line over DSL from whatever carrier they choose, thus saving money over a traditional landline.

But because the conditions are temporary, lasting only for 30 months, some of the commissioners are afraid that landline competition might ultimately decline. Phone Watch will be watching to see what happens. In the meantime, the time to take advantage of cheap VoIP is now.

More news coverage: Light Reading

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