The Federal Communications Commission has made SBC Communications an unusual offer: the telco can get bigger by gobbling Ameritech, but only if SBC also expands wholeheartedly into local markets.
The commission made the pitch as part of a set of conditions the two regional Bell operating companies (RBOC) would have to meet before completing their proposed $78 billion merger.
One key condition requires SBC/Ameritech to expand into 30 markets outside its home territory within 30 months. If it fails to expand into those areas, SBC/Ameritech could be fined $40 million per market missed.
FCC wants to promote local phone competition overall, and therefore wants SBC/Ameritech to compete in as many places as possible.
The list of 26 conditions released by the FCC was drawn up by an FCC study group and representatives of SBC and Ameritech. The conditions are open for public comment before the FCC votes on them.
Other conditions call for promoting broadband access services, including digital subscriber line and frame relay. The conditions also include making it easier for competitors to gain access to SBC/Ameritech network elements to create competitive services.
SBC/Ameritech would also agree to improve residential phone services.
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