AT&T Rivals Contest Merger Rule's Impact

AT&T RIVALS CONTEST MERGER RULE'S IMPACT
[SOURCE: Technology Daily 1/5, AUTHOR: David Hatch]
As the dust settles on the FCC's approval of the AT&T, BellSouth merger, some large and mid-sized local telephone competitors to the company are complaining that one condition imposes "backdoor" requirements on them. At issue is a restriction stipulating that the new AT&T reduce its special-access rates, the discounted fees it offers wholesale business customers. In order for companies such as Qwest Communications International and Verizon Communications to take advantage of the discounts, they must offer similar services at the same reduced fees as AT&T, according to the condition. "Any effort by AT&T, BellSouth to bind the commission to accept its proposed discriminatory tariff is null, void and to no effect," Robert Connelly, the vice president and deputy general counsel at Qwest, wrote in a Jan. 4 letter to the agency. He threatened possible legal action, stating that if the new AT&T files a "discriminatory" tariff for special access rates, "legal processes can prevent the illegal conduct from actually coming to fruition." A source noted that impacted companies have several options. They can appeal the soon-to-be-released merger order at the FCC or in federal court, or challenge tariff changes that the merged company will file with the agency.
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