Mergers may vex regulators

0 Comments | USA TODAY, September, 2005 | by Paul Davidson

As federal regulators weigh what, if any, conditions to impose on two mammoth phone company mergers, they face a vexing Rubik's cube of possibilities.

Any requirements they attach to SBC Communications' acquisition of AT&T and Verizon's purchase of MCI could force some customers to do business with a telecom company they didn't choose.

The Justice Department is largely focused on the effects of the megadeals on corporate customers, say people with direct knowledge of the situation. In exchange for the deals' approval, they say, Justice is considering forcing the combined company to shed up to several thousand lines that serve big business. The rub: Most corporate customers are under contract and will likely balk at switching providers.

Both Justice and the...