* Complaints hit FCC three months before expected SBC/AT&T merger approval
Qwest is charging SBC with anti-competitive practices, including strong arming carrier business partners not to entertain acquisition offers from SBC competitors, such as Qwest.
In a letter to the FCC, Qwest complained about the alleged SBC practices, which come just three months prior to the expected closing of its purchase of AT&T. The charges also come as FCC Chairman Kevin Martin looks for the commission to approve the SBC/AT&T and Verizon/MCI mergers by next month.
Qwest requested the FCC to look into contracts between SBC and WilTel, and SBC and Time Warner Telecom, which Qwest claimed contained language that restricted the carriers’ abilities to merge with “blacklisted” companies. Qwest also alleges that SBC is limiting the ability of Qwest and other carriers that access SBC’s network to reduce their access costs through grooming and use of unbundled network elements.
SBC said Qwest’s complaint was a “desperate, 11th hour attempt” to thwart the merger. SBC also said Qwest itself is party to contracts that contain similar provisions, such as one with Sprint PCS.
Qwest asserts there are no “blacklisting” provisions in its contract with Sprint.
Qwest is looking to acquire smaller carriers or certain assets of smaller carriers in order to better compete with the SBC/AT&T and Verizon/MCI unions. Qwest is reportedly sizing up XO Communications as well as Time Warner Telecom.
XO has already established a golden parachute plan for executive and directors in the event of a change of control at the company.
