The US Justice Department on Thursday approved the telecom industry mega-mergers of Verizon with MCI and SBC with AT&T, subject to the divestiture of some operations by both groups.
The approvals clear a major hurdle to the deals that will create two telecom powerhouses in the US. The mergers must still be reviewed by the Federal Communications Commission (FCC), but the Justice Department said it "has coordinated with the FCC throughout its investigation."
Analysts say it is rare for the agencies to disagree on approvals.
The mergers would effectively end an era for two major names in the telecom industry: AT&T, which goes back to telephone inventor Alexander Graham Bell; and MCI, which emerged from the scandal-plagued group WorldCom.
The Justice Department said it would require both Verizon and SBC "to divest portions of certain local fiber-optic network facilities" to proceed with the mergers.
The US$16 billion sale of AT&T to SBC and the US$8.5 billion purchase of MCI by Verizon makes the two largest US telecom firms even bigger.
Under the Justice Department's edict, SBC and Verizon have to divest some fiber-optic assets in more than 700 hundred commercial buildings in 19 cities.
Critics unsuccessfully sought stiffer conditions, arguing that competition in the business market would be reduced by the mergers.
Authorities officially filed suit to block the mergers, but said the deals would be allowed if the companies accepted the terms. Both SBC and Verizon have indicated they would follow the terms.
Verizon said in a statement it expects its deal with MCI to close later this year or early next. SBC said it expects to complete the acquisition this year.
"The Justice Department has a comprehensive view of the state of the communications industry, and its decision reflects a fair and impartial determination that, with these narrowly tailored conditions, the merger of SBC and AT&T will not harm competition," said James Ellis, SBC senior executive vice president and general counsel.
INSURRECTION: The NSB said it found evidence the CCP was seeking snipers in Taiwan to target members of the military and foreign organizations in the event of an invasion The number of Chinese spies prosecuted in Taiwan has grown threefold over a four-year period, the National Security Bureau (NSB) said in a report released yesterday. In 2021 and 2022, 16 and 10 spies were prosecuted respectively, but that number grew to 64 last year, it said, adding that the Chinese Communist Party (CCP) was working with gangs in Taiwan to develop a network of armed spies. Spies in Taiwan have on behalf of the CCP used a variety of channels and methods to infiltrate all sectors of the country, and recruited Taiwanese to cooperate in developing organizations and obtaining sensitive information
BREAKTHROUGH: The US is making chips on par in yield and quality with Taiwan, despite people saying that it could not happen, the official said Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) has begun producing advanced 4-nanometer (nm) chips for US customers in Arizona, US Secretary of Commerce Gina Raimondo said, a milestone in the semiconductor efforts of the administration of US President Joe Biden. In November last year, the commerce department finalized a US$6.6 billion grant to TSMC’s US unit for semiconductor production in Phoenix, Arizona. “For the first time ever in our country’s history, we are making leading edge 4-nanometer chips on American soil, American workers — on par in yield and quality with Taiwan,” Raimondo said, adding that production had begun in recent
Seven hundred and sixty-four foreigners were arrested last year for acting as money mules for criminals, with many entering Taiwan on a tourist visa for all-expenses-paid trips, the Criminal Investigation Bureau (CIB) said on Saturday. Although from Jan. 1 to Dec. 26 last year, 26,478 people were arrested for working as money mules, the bureau said it was particularly concerned about those entering the country as tourists or migrant workers who help criminals and scammers pick up or transfer illegally obtained money. In a report, officials divided the money mules into two groups, the first of which are foreigners, mainly from Malaysia
SILICON VALLEY HUB: The office would showcase Taiwan’s strengths in semiconductors and artificial intelligence, and help Taiwanese start-ups connect with global opportunities Taiwan has established an office in Palo Alto, one of the principal cities of Silicon Valley in California, aimed at helping Taiwanese technology start-ups gain global visibility, the National Development Council said yesterday. The “Startup Island Taiwan Silicon Valley hub” at No. 299 California Avenue is focused on “supporting start-ups and innovators by providing professional consulting, co-working spaces, and community platforms,” the council said in a post on its Web site. The office is the second overseas start-up hub established by the council, after a similar site was set up in Tokyo in September last year. Representatives from Taiwanese start-ups, local businesses and
RSS