FCC gives green light to major telecom mergers

FCC gives green light to major telecom mergers


In a significant move that is meant to deliver scores of benefits to consumers, the Federal Communications Commission (FCC) has given its approval for two proposed major mergers in the telecom sector. The first merger is between SBC Communications and AT&T Corp, and the second significant merger would be between Verizon Communications with MCI.

The FCC has given its nod to these proposed mergers on the ground that it will ultimately provide a host of benefits to consumers and these will be in the larger public interest. The commission felt that benefits will be accrued to the consumers by integration of complementary networks which will ensure a more efficient service for the end users. The mergers may also mean new services and enhanced network performances for the consumers.

The FCC also concluded that these mergers will be in the national interest as the new entities will also take care of security concerns and will provide better services to government customers. Furthermore, the mergers will give the companies increased economies of scale as well as the avenues to cut operational costs which will facilitate these giant telecom entities to break new grounds in research and development (R & D) which will ultimately benefit the consumers.

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