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Petition by
WorldCom and MCI for FCC approval of Proposed merger. FCC
Public Notice DA 97-2494
- FCC Approves Merger of WORLDCOM and MCI (CC
Docket No. 97-211, FCC 98-225). [ Text
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Release & Statements ] 9/14/98
- COMMON CARRIER ACTION - FCC
APPROVES MERGER OF WORLDCOM AND MCI (CC DOCKET NO.
97-211) - REPORT NO. CC 98-26. The Commission
approved the transfer of communications licenses
and authorizations from MCI Communications Corp.
to WorldCom, Inc., subject to two conditions: MCI
must complete divestiture of its Internet assets
prior to the close of its merger with WorldCom,
and the transfer of MCI's direct broadcast
satellite license to WorldCom is subject to the
outcome of pending applications for review of the
initial license grant to MCI. The Commission found
that, with these conditions, the merger will serve
the public interest. Action by the Commission
September 14, 1998, by Memorandum Opinion and
Order (FCC 98-225). News Media Contact: Rochelle
Cohen (202) 418-0253. CCB Contact: Michelle M.
Carey at (202) 418-1557; TTY: (202) 418-2555.
- Additional comments due: March
13 [FCC
Order]
- Additional replies due: March 20
- Comments Due: January 5
- Replies Due: January 26
- FCC CCB WorldCom
Merger Page. Includes links to comments.
- Consumer Project on Technology's
Worldcom/MCI
Webpage.
- The Communication Workers of
America's stopmciworldcom.org
web page.
- Worldcom's
Website.
- Economic
Policy Institute. See reports opposing
merger. Books
for sale
- Bad Deal of the Century: The
Worrisome Implications of the Worldcom-MCI
Merger
- Monopoly.com: Will the
WorldCom-MCI Merger Tangle the Web
This merger could place from 50 to 80
percent of the Internet's backbone in the control of
one corporation.
- January 12,
1998. Commission Seeks Comment on GTE Service Corporation
Motion to Dismiss Applications of WorldCom,
Inc. And MCI Communications Corporation for
Transfers of Control of MCI to WorldCom. (DA
No. 98-49). Dkt No.: CC- 97-211. Daily
Digest 1/14/98
- Comments Due: January 27,
1998;
- Reply Comments Due: February
5, 1998.
- Comments
- Commission Seeks Comment on MCI
ex Parte Describing Internet Aspects of Proposed
WorldCom and MCI Merger. (DA No. 98-1059). Dkt
No.: CC-97-211. Public
Notice.
- Daily
Digest Released: April 29, 1998. COMMISSION SEEKS
COMMENT ON PROPOSED PROTECTIVE ORDER FILED BY
WorldCom AND MCI.(DA
No. 98-820). Dkt No.: CC-97-211.
- Comments Due: May 7, 1998;
- Reply Comments Due: May 13,
1998.
- WorldCom, INC. AND MCI
COMMUNICATIONS CORPORATION. Issued
Order Adopting Protective Order to protect
material filed in connection with the Application
of WorldCom, Inc. and MCI Communications
Corporation for Transfer of Control of MCI
Communications Corporation to WorldCom, Inc. Dkt
No.: 97-211. Action by Chief, Common Carrier
Bureau. Adopted: June 5, 1998. by Order. (DA No.
98-1072). CCB
- European Commission (1998), Commission decision of 8 july 1998 declar-
ing a concentration to be compatible with the common market and
the functionning of the EEA agreement (case IV/M.1069 | World-
Com/MCI). Ocial Journal of the European Commission, 4.5.1999,
L116/1{L116/35.
MCI Voluntarily
Divests of MCI Backbone
-
1998, July 15, MCI announced 1998, that it had
agreed to sell all of its Internet business to C&W for $1.75 billion. [MCI/WCOM
Order para 151]
- Transfer of Assets and Employees. MCI will
transfer to C&W all of the physical assets that
constitute its Internet backbone: 22 nodes (or
hubs); over 15,000 interconnection ports; and all
the routers, switches, and other equipment dedicated
to the backbone. MCI will lease to C&W the
transmission capacity it needs to operate the
network, including projected growth requirements, on
"competitive commercial terms" for two years, with
an option for C&W to extend the term for an
additional three years. MCI will also provide
C&W the right to use all associated dedicated
software and OSS, will assign to C&W all
Internet addresses used in the transferred business,
and will allow C&W to collocate equipment in MCI
facilities.405 MCI will transfer all employees
necessary to operate the Internet business by
allowing C&W to identify those individual
employees [but not
at the time MCI employee Vint Cerf] that it
wishes to be transferred from a list of
approximately 1,000 MCI employees.406 In addition,
MCI will transfer to C&W all of its more than 40
peering agreements. Finally, MCI WorldCom and
C&W are prohibited from terminating their
peering agreement for five years
- Transfer of ISP Customers. MCI will transfer to
C&W MCI's contracts with ISPs, such that C&W
will replace MCI as the IBP to more than 1,300
domestic and international ISP customers that now
obtain Internet access from MCI.409 According to the
terms of the agreement, MCI WorldCom cannot contract
with or solicit any of the transferred ISP customers
to provide dedicated Internet access service for two
years, unless the ISP customer already purchases
Internet services from WorldCom at the closing of
the agreement.
- Transfer of Retail Customers. MCI will transfer to
C&W its contracts with retail customers not only
for Internet service, but also for web-hosting,
managed firewall, and Real Broadcast Network
services.411 According to the terms of the
agreement, MCI WorldCom cannot contract with or
solicit transferred retail dedicated access
customers to provide dedicated access services for
eighteen months, and cannot solicit web-hosting and
managed firewall services for six months, unless the
customers already purchase these services from
WorldCom at closing.412 MCI will also allow C&W
to use the MCI name for one year.
- In March 1999, Cable & Wireless sued MCI WorldCom, alleging violations of the agreement.
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