Qwest and Level 3 are dialing up uncertainty following Thursday’s Department of Justice approval of the SBC/AT&T merger and Verizon/MCI merger.
Final approval of the mergers rests with the Federal Communications Commission, which meets today and could make a decision that will dramatically change the telecommunications landscape.
Qwest and other phone companies have pressed federal regulators to require conditions on the mergers, including the sale of lines in overlapping markets.
Justice didn’t require any asset sales.
“It is disappointing that the Department of Justice has agreed to a settlement that eliminates the competitive presence developed by AT&T and MCI over the last 10 years,” Qwest said in a statement.
Denver-based Qwest made a failed bid to wrest MCI from Verizon earlier this year.
Qwest and other telecoms may benefit from a Justice requirement that Verizon and SBC lease unused fiber connections into more than 350 buildings in several states on the East Coast, said Donna Jaegers, a Denver telecommunications analyst.
“I think Qwest would be an interested buyer. Time Warner Telecom has (also) been very patient in buying assets,” Jaegers said.
A spokeswoman at Level 3 declined to comment on how the company might be affected until it has a chance to look more closely at details of the decision.
Staff writer Beth Potter can be reached at 303-820-1503 or bpotter@denverpost.com.
