WASHINGTON – MCI Communications Corp. filed with the Federal Communications Commission protesting a proposed investment by France Telecom and Deutsche Telekom AG in rival telecommunications provider Sprint Corp. until French and German telecom markets are opened to competition.
“Allowing foreign monopolists preferential access to the U.S. market, which is open to full competition, while they retain dominance in their home markets will continue high prices for American consumers and at the same time place American businesses at a disadvantage in the global marketplace,” said Jim Lewis, MCI’s senior vice president for world regulatory affairs.
France Telecom and Germany’s Deutsche Telekom – both government-owned telecommunications providers – are trying to purchase 20 percent of Sprint.
The companies intend to create a global partnership of regional operating groups, a group focused on Western and Eastern Europe and a global backbone network operating group. The trio said it plans to offer international data, voice and video services, services targeting travelers and other international services.
MCI said it would be more fair if the FCC denied the proposed investment in Sprint until French and German markets are opened to competition. Under European Union rules, the telecom markets in EU countries, including France and Germany, must be opened to competition no later than Jan. 1, 1998.
