July 14, 2006
Mergers face new scrutiny
AT&T and Verizon will make arguments today in federal court that they hope will convince Judge Emmet G. Sullivan to approve what was once considered a routine consent decree as part of the AT&T-SBC and Verizon-MCI mergers.
Sullivan last Friday surprised many by raising concerns that the consent decrees negotiated by the U.S. Department of Justice with the two telecom giants may not go far enough to protect the public interest by preserving competition.
The DoJ had approved the two mergers based on agreements with both parties that some fiber optic facilities would be divested to ensure competition. The facilities in question involved instances in which either AT&T or MCI operated the only competitive fiber optic cables into a building in SBC or Verizon territory, respectively.
See Telephonyonline for more on this article.


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