To: Bernard Levy who wrote (3739 ) 5/16/1999 10:35:00 PM From: MikeM54321 Read Replies (2) | Respond to of 12823
Re: FCC / US West+Global Crossing Bernard and Frank, I find it quite unusual for there to be zero mention concerning how the FCC may intervene in the proposed merger between US West and Global Crossing? You would have thought one of the writers would have at least mentioned the FCC problem. Strange...Whoops. Just found a story that finally mentions the FCC. It's the last link below. Plus it brushes the issue about separation of divisions (local and long distance) reasoning too. Supposedly US West is lining up a dance partner for a dance that may not happen for years. Kind of strange if you ask me. But I suppose both Frontier and US West wanted to make sure they absolutely have a dance partner when the time comes. Global Crossing deal could be for the same reason. MikeM(From Florida) ************************* From Yahoo:biz.yahoo.com From Bloomberg:bloomberg.com From CBS MarketWatch:cbs.marketwatch.com From CNet:news.com Global Crossing would gain access to US West's local footprint, valuable corporate accounts in high-tech areas such as Denver and Seattle, and new momentum in the data business, Conrad said. US West would ultimately get a high-quality long distance network, a goal all the local phone companies are looking to achieve, he added. But the combination would have some initial hurdles--and some more deeply rooted sticking points--according to analysts. US West is barred from offering long distance service until it proves to federal regulators that it has opened its local phone markets to competition. So until the company gets federal approval to expand its markets, the combined company can't offer Frontier's long distance service in US West's 14-state territory, analysts said. That wouldn't necessarily kill the deal, however. The company could simply put any of Frontier's long distance services on hold for those 14 states, or work out some other kind of operation. Or the company could wait to complete the transaction until US West actually gets federal long distance approval, a period that could be a year to several years. "I think there's ways to finesse the regulatory issues," said Boyd Peterson, a senior telecommunications analyst with The Yankee Group.