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DOJ has announced that it will file suit to block this merger and the EU has likewise indicated that it is unlikely to go through. The withdrawal of the WCOM / Spring merger application was approved on August 3.
Merger proceeding raises concern of merging the largest Internet backbone provider with another of the largest providers. MCI WorldCom is the owner of UUNet and the owner of the major backbone peering points known as the MAEs, in particular MAE East and MAE West where a tremendous amount of backbone traffic is exchanged. Concern for consolidation and potential anti-competitive affect on the market. One option in order to permit the merger to go through reportedly is for Sprint to divest itself of its Internet backbone services.
From the FCC Public Notice:
"On November 17, 1999, MCI WorldCom, Inc. (MCI WorldCom) and Sprint Corporation (Sprint) filed joint applications under Sections 214 and 310(d) of the Communications Act, 47 U.S.C. §§ 214 and 310(d), requesting Commission approval of the transfer of control to MCI WorldCom of licenses and authorizations controlled or requested by Sprint or its affiliates or subsidiaries. This transfer of control would take place as the result of a proposed merger agreement whereby Sprint will be merged with and into MCI WorldCom. Upon merger closing, the separate corporate existence of Sprint will cease to exist and the present wholly-owned subsidiaries of Sprint that hold Section 214 authorizations, cable landing licenses and/or radio licenses will become wholly-owned subsidiaries of the merged company, which will be named WorldCom.
"MCI WorldCom and Sprint submit that the proposed merger is likely to produce benefits in the markets for local and long distance, voice and data, narrowband and broadband, and wireline and wireless services. They further assert that the proposed merger will serve the public interest and will not produce anti-competitive effects in any telecommunications market. Moreover, MCI WorldCom and Sprint state that they will work cooperatively with policymakers to address and resolve possible concerns regarding Sprint's Internet backbone business." |
| FCC's WCOM Sprint Webpage
Released: 11/20/2001. COMMON CARRIER, INTERNATIONAL, AND WIRELESS TELECOMMUNICATIONS BUREAUS MODIFY WORLDCOM-INTERMEDIA MERGER CONDITIONS. (DA No. 01-2727). CCB. Contact: Henry L. Thaggert at (202) 418-7941,
COMMISSION SEEKS COMMENT ON JOINT APPLICATIONS FOR CONSENT TO TRANSFER CONTROL FILED BY MCI WORLDCOM, INC. AND SPRINT CORPORATION. (DA No. 00-104). Dkt No.: CC- 99-333. Public Notice (Word) Released: January 19, 2000.
SPRINT CORPORATION/MCI WORLDCOM, INC. Granted WorldCom's and Sprint's
request to withdraw its application in CC Docket 99-333. Dkt No.: CC-99-333. Action by Chief, Policy and Program Planning Division, Common Carrier Bureau. Adopted: April 3, 2000. by Order. (DA No. 00-1771). CCB
Public Notice Released: March 27, 2000. COMMON CARRIER BUREAU ANNOUNCES PUBLIC FORUM ON MCI WORLDCOM, INC. AND SPRINT CORPORATION, APPLICATIONS FOR TRANSFER OF CONTROL.CC Docket 99-333, contact: Claudia Fox or Susan Pie 202-418-1580; News media contact: Michael Balmoris 202-418-0253. (DA No. 00-672).
Statement of FCC Chairman Kennard Regarding U.S. Department of Justice Action on Proposed Worldcom-Sprint Merger. 6/27/00
SPRINT CORPORATION AND MCI WORLDCOM, INC. Adopted Modified Protective Order to provide that any confidential or proprietary documents submitted will be available for review. Action by Deputy Chief, Common Carrier Bureau. Adopted: April 11, 2000. by Order. (DA No. 00-827). CCB
SPRINT CORPORATION AND MCI WORLDCOM, INC. Issued Protective Order to ensure that the documents submitted by MCI WorldCom and Sprint are afforded adequate protection. By Order Adopting Protective Order. Dkt No.: CC-99-333. Action by Chief, Common Carrier Bureau. Adopted: February 2, 2000. (DA No. 00-186). CCB
STATEMENT OF FCC CHAIRMAN WILLIAM E. KENNARD ON PROPOSED MERGER OF MCI WORLDCOM, INC. AND SPRINT CORP. New media contact: Michael Balmoris 202-418-0253.
Apr 5 FCC Public Forum on MCI WorldCom Merger. Public Notice. |
Comments Filed in this proceeding can be viewed at the FCC's Electronic Comment Filing System (you will need the docket number)
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