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Summary of Merger Requirements

SBC/AT&T and Verizon/MCI

  • Two significant telecommunications mergers were approved in California and nationally, SBC/AT&T and Verizon/MCI.
  • In addition to California Public Utilities Commission merger conditions, the Federal Communications Commission and U.S. Department of Justice (DOJ) have each included conditions for these mergers in California.
  • While no DOJ conditions apply to Verizon/MCI, SBC/AT&T must divest specified local fiber-optic network facilities in response to the DOJ.
  • There are a total of 27 conditions that affect SBC/AT&T and 20 that affect Verizon/MCI.
  • Both SBC/AT&T and Verizon/MCI must comply with 20 similar conditions, while seven of the conditions only apply to SBC/AT&T.
  • The merger conditions are intended to mitigate impacts in the mass market, wholesale, and enterprise sectors and/or provide benefits to underserved communities.
  • Each condition falls into one of the following areas:
    • UNEs
    • Special access
    • Internet backbone
    • ADSL
    • Net neutrality
    • Facilities divestiture
    • Annual certification
    • Compliance
    • Technology training
    • Philanthropy
  

Last Modified: 10/11/2007