WASHINGTON-Paging Network Inc., the nation’s top paging carrier, said the Federal Communications Commission should condition any approval of the $57 billion merger between SBC Communications Inc. and Ameritech Corp. on SBC immediately entering into interconnection agreements with wireless operators.
“Neither of these companies have been exemplary in negotiating interconnection agreements in good faith,” said Judith St. Ledger-Roty, in written comments filed with the FCC. However, according to St. Ledger-Roty, SBC has behaved worse than Ameritech.
“PageNet (and other paging carriers) are unable to reach reasonable agreements with SBC because of SBC’s unlawful insistence that paging carriers give up their right to any compensation as a condition of the agreement,” St. Ledger-Roty said.
St. Ledger-Roty also charged the FCC should force SBC to stop billing paging carriers for facilities, which she says is illegal. The FCC should make SBC swiftly refund all money plus interest charged by SBC for its facilities.
“It is time to force SBC to comply with the rules, and with the [Communications] Act. This commission has before it a vehicle, a bully pulpit and a hammer with which to make SBC comply,” she said.
The Justice Department in March approved the SBC-Ameritech merger, but required the two firms to divest mobile phone systems in 17 markets.
The FCC is reviewing the proposed merger, but there are indications the agency might reject the transaction absent the imposition of conditions to safeguard competition.
That the FCC has sent out such signals has enraged Senate Commerce Committee Chairman John McCain (R-Ariz.).
“You must do whatever is necessary to remove the institutional unfairness and prejudgment that has been permitted to taint this proceeding. It is impossible to imagine that the head of any federal agency would permit fairness of the agency’s decision-making personnel, and the integrity of the agency’s decisions, to appear so compromised,” said McCain, in letter last Wednesday to FCC Chairman William Kennard.
McCain asked for a response by last Friday.
“The committee will find it necessary to pursue this matter further if your response does not contain the specific steps you have taken to resolve this problem and to restore public confidence in the integrity of this, and other, commission proceedings,” McCain said.
