CenturyLink Won't Fight Level 3/tw telecom Deal
CenturyLink won't file a petition for reconsideration on the FCC Wireline Bureau’s decision to approve the proposed Level 3/tw telecom deal, a CenturyLink spokeswoman said Monday. CenturyLink had not pushed the FCC to deny the merger, but did urge the…
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agency to impose conditions on the approval, including a requirement Level 3 give CenturyLink and other incumbent local exchange carriers access to the entrance conduit at Level 3’s on-net buildings (see 1410240028). The commission has previously ruled that LECs don't have a reciprocal right to gain access to the facilities of a competitive LEC under the Telecommunications Act’s Section 251(b)(4), the bureau said in an order Friday. Revisiting the determination of reciprocity is better done under a separate proceeding, the bureau said. Level 3 and tw telecom had argued the deal would improve competition because Level 3’s global footprint and tw telecom’s more extensive operations in metropolitan areas would allow it to more effectively compete for customers. “On balance, we find that any potential loss of competition that may occur as a result of the transaction is outweighed by the public interest benefits that will likely result from this increased competition,” the bureau said. The companies' shareholders still need to approve the deal Tuesday, a Level 3 spokeswoman told us. The FCC approval "does not come as a surprise. There is very little overlap between the two networks ... so the deal wasn't expected to raise anti-trust concerns," said Equity Research Senior Analyst Jennifer Fritzsche in a note to investors Monday.