CenturyLink receives FCC approval for Qwest purchase

Just short of a year after announcing its intentions, CenturyLink Inc. (CTL) received Federal Communications Commission approval for its acquisition of Qwest Communications International Inc. (Q) The deal, which was announced last April, calls for CenturyLink shareholders to control 50.5% of the combined operations, with Qwest shareholders controlling the remaining 49.5%.
The transaction is expected to close pending final state approvals.
In granting its approval the FCC placed a handful of conditions on the combined operations that it said would ensure that the merged entity will follow through with commitments. Those conditions include:
–Launching of a broadband adoption program focused on low-income consumers that will include offering services beginning at less than $10 per month and a computer for less than $150.
–Increase the capacity of Qwest’s network and increase download speeds to at least 4 megabits per second, double the availability of 12 Mbps service and triple the availability of 40 Mbps service.
–Decrease three forms of Universal Service Fund support for smaller companies that the company currently received as part of the FCC’s plans for USF reform.
–A seven-year freeze on enterprise pricing in buildings where both Qwest and CenturyLink current offer service.
–Ensuring the deal does not harm interconnection agreements with competing phone carriers.
The combined operations will offer telecommunication services in 37 states encompassing approximately 5 million broadband customers, 17 million access lines, 1,415,000 video subscribers and 850,000 wireless consumers.
CenturyLink announced earlier this year plans to sell Verizon Wireless equipment and services to its residential and small business customers.