A 'practical' solution; F.C.C.'s give and take in SBC-Ameritech merger deal

Article Abstract:

SBC Communications Inc. has agreed to the Federal Communications Commission's conditions that it expand to 30 new markets within 30 months for the right to acquire Ameritech Corp. In effect, SBC is agreeing to the most severe conditions imposed on any telephone company in return for the F.C.C.'s regulatory approval. SBC could be liable for up to $2.3 billion in fines if it does not expand into these new markets and meet a number of other conditions imposed by the agency. Yet, despite what appears to be a challenge for SBC, in May 1998, when it announced its plans to acquire Ameritech, the company stated it wanted to expand into 30 local phone markets outside its region, although over a period of 36 months, under a plan it dubbed the national-local strategy. So, despite the prospects of having to pay large fines if it can not meet the requirements imposed by the F.C.C., SBC really does not face a much greater challenge than those it would have to contend with under its own business plan.

United States, Asset sales & divestitures, Acquisitions & mergers, Telecommunications, Regulation and Administration of Communications, Electric, Gas, and Other Utilities, Government regulation, Telephone Communication, Telephone Communications, Telecommunications Regulation, Mergers, acquisitions and divestments, Company acquisition/merger, Telecommunications regulations, United States. Federal Communications Commission, Economic policy, Telephone services, AT&T Inc., SBC, Deregulation, Regional Bell Operating Companies, AIT, Ameritech Corp.

---

Sprint in plan to enter local phone market

Article Abstract:

Sprint plans to announce a local telephone markets strategy based on delivering high-speed access to cyberspace, according to executive insiders. The world's third-largest telephone carrier was hoping to cooperate with the five Bell local telephone companies instead of creating direct competition, a person close to Sprint said. One scenario in the code-named Operation Fast Break could involve Sprint's capacity purchase on the many Bells's planned advanced local data networks. A Sprint insider listed Bell Atlantic and SBC Communications as the Bells that appear to be conducting the most serious talks with Sprint. Plans call for Sprint to offer its 'integrated on-demand network' to large business customers later in 1998, then offering the service to most business clients in mid-1999 and residential users in late 1999. The company intends to target Operation Fast Break for users who seek a single connection to its versatile national fiber optic network.

Services, Sprint Corp., FON, Company service introduction, Service introduction, Local telephone service

---

Similar abstracts:

• Abstracts: Complementary theoretical perspectives on the dismissal of new venture team members. New venture teams' assessment of learning assistance from venture capital firms
• Abstracts: Sound of F.C.C. silence in a big merger. Local Bells see a bright side in the AT&T deal
• Abstracts: Building a business behind the screen; America Online's E-commerce goals. Money starts to show in Internet shopping
• Abstracts: Coal price cave-in kills a cosy tradition. US miner washes its hands of Australian coal. Australian suppliers risk Japanese default
• Abstracts: Contracting out it out at Hamersley. High excitement after iron-making triumph. Winning double from miner's waste dump

This website is not affiliated with document authors or copyright owners. This page is provided for informational purposes only. Unintentional errors are possible.