WASHINGTON-SBC Communications Inc. and Ameritech Corp. agreed to include wireless issues in their proposed conditions for license transfer, said the Personal Communications Industry Association.
“In a nutshell, we are pleased that the scope has been expanded,” said Angela Giancarlo, PCIA director of federal regulatory affairs.
The new proposed conditions come as the Federal Communications Commission is in the final stages of developing conditions upon which the transfer of Ameritech licenses to SBC can be completed. The license transfer is seen as a necessary step in the anticipated $76.9 billion merger of the two companies. The FCC does not officially review mergers, but reviews license transfers.
The new conditions contain a PCIA-sponsored proposal to include requests from any interconnecting carrier rather than just competitive local exchange carriers.
The proposal recognizes federal jurisdiction with regards to mediation with wireless companies.
SBC/Ameritech also proposed a default pricing scheme during mediation and negotiation so interconnection can begin to be implemented before negotiations on a final agreement are completed. This provides interim relief during negotiations, Giancarlo said.
SBC/Ameritech originally agreed to 26 conditions-with attached fines of potentially $2 billion-in an attempt to have their merger approved by the FCC. The FCC put these out for comment and additional suggestions.
The original merger condition document was less than 100 pages; the new version is more than 250 pages. The proposed fines increase in the new proposal.
The conditions were in response to an April 1 letter sent by FCC Chairman William Kennard to SBC Chairman Edward E. Whitacre Jr. and Ameritech Chairman Richard C. Notebaert, saying the license transfer could probably not be approved without conditions.
Qwest merger
In other merger news, Qwest Communications International Inc. and U S West Inc. plan to hold shareholders’ meetings Nov. 2 to vote on their proposed merger. All shareholders of record on Sept. 7 will be able to participate, either in person or by proxy. Proxy ballots will be mailed later this month.
The meeting is earlier than originally anticipated, the companies said, because the Securities and Exchange Commission has decided not to review the filings. The combination of Qwest and U S West will be known by the Qwest name and will be based in Denver.
