WASHINGTON-The most powerful telecommunications policy members of the House of Representatives are questioning the process used by the Federal Communications Commission to review mergers.
Rep. Thomas Bliley (R-Va.), chairman of the House Commerce Committee, told FCC Chairman William Kennard in a letter Thursday he was concerned by the process surrounding the development of proposed conditions for SBC Communications Inc.’s intended acquisition of Ameritech Corp.
“Following the [Commerce] Committee’s review of the FCC’s actions in both the relocation of digital electronic messaging service (DEMS) and the implementation of the schools and libraries program, you gave the committee explicit assurances that the FCC would make future decisions in a transparent and open manner. But the sequence of events surrounding the announcement of these proposed conditions suggests otherwise,” Bliley wrote.
Rep. Billy Tauzin (R-La.), chairman of the House telecommunications subcommittee, noted, “In recent conversations with [Kennard], I repeatedly made it clear that-in my opinion-the FCC has overstepped its legal authority time and time again by `conditioning’ certain telecommunications mergers. I am determined to put an end to that practice, even if it means a legislative showdown on Capitol Hill over the FCC’s power in these areas.”
Tauzin said the FCC could redeem itself by giving expeditious consideration to the proposed merger of U S West Inc. and Qwest Communications International Inc.
“This proceeding will give the FCC an opportunity to demonstrate to Congress that it can consider a major telecommunications merger without undue delay or the imposition of burdensome, unnecessary conditions,” Tauzin said.
Tauzin’s comments were made as Qwest/U S West filed an application for license transfer at the FCC.
In July, Qwest, the Denver-based broadband specialist, successfully wooed its Denver neighbor U S West away from its original bidder, Global Crossing Ltd. Qwest will pay U S West shareholders $69 in stock for each share of U S West common stock. The deal is subject to FCC approval.
