US Justice Dept. approves SBC-AT&T, Verizon-MCI mergers

AFP, October, 2005

WASHINGTON (AFP) — The US Justice Department approved the telecommunications industry mega-mergers of Verizon with MCI and SBC Communications with AT&T, subject to the divestiture of some operations by both groups.

The approvals clear a major hurdle to the deals that create two telecom powerhouses in the United States. The mergers must still be reviewed by the Federal Communications Commission, but the Justice Department said it "has coordinated with the FCC throughout its investigation."

The FCC is slated to vote Friday on the mergers. Analysts say it is rare for the two agencies to disagree on merger approvals.

The mergers would effectively end an era for two major names in the telecom industry: AT&T, which traces its history back to telephone inventor Alexander Graham Bell; and MCI, which emerged from the scandal-plagued group WorldCom.

The 16 billion dollar sale of AT&T to SBC and the 8.5 ...