Martin Faces Tough Talks On Mergers

The emphasis of FCC Chairman Kevin Martin on reaching consensus among his colleagues on the commission could face its toughest test during closed-door negotiations over pending telecommunications mergers. Martin, a Republican, recently outlined his initial bargaining position to fellow commissioners. He wants the combinations of AT&T with SBC Communications and MCI with Verizon Communications approved with no significant conditions, an industry source said. But observers speculated that the FCC’s two Democrats -- Commissioners Michael Copps and Jonathan Adelstein -- would seek restrictions. "I'd be stunned if the Democrats went along with that," said Gene Kimmelman, director of Consumers Union’s Washington office. "They ought to have enormous concerns about how consumers get other [communications] choices." Another source predicted the Democrats would offer counterproposals and Martin would seek a compromise to secure unanimous approvals. Sources said the magnitude of the transactions -- and the potential for a public backlash if telecom rates rise -- would propel Martin to get all commissioners on board. One source suggested that unanimous approval would insulate the Republicans from potential political fallout during the 2006 mid-term elections if telecom rates skyrocket. And the Democrats, with the commission evenly split, have an incentive to cooperate. Watchdogs hope the Democrats will press for the sale of overlapping facilities in the companies' core services. They are also seeking "naked DSL," which is broadband service sold separately from phone service, and "network neutrality" safeguards designed to prevent companies from discriminating against competing content offerings.
[SOURCE: Technology Daily, AUTHOR: David Hatch]
http://www.njtelecomupdate.com/lenya/telco/live/tb-UPVP1129153576037.html