Level 3’s $34 billion sale to CenturyLink “has merit and should be approved,” the California Public Utilities Commission said in a proposed decision released Friday. The CPUC said it may vote as soon as the commissioners' Oct. 12 meeting on the draft order approving a June 30 settlement agreement between the companies and some consumer groups (see 1708170022). The settlement "meets the requirements for approval in that it is reasonable in light of the record, consistent with the applicable law, and in the public interest,” the proposed decision said. "The combined company will be enabled to offer wholesale and enterprise customers a broad range of services that they currently provide individually.” Customers will benefit from settlement conditions including “the commitment for California-specific capital expenditures over the next three years of at least $323 million,” it said. The companies should invest more because the committed amount is less than what the companies invested earlier, said California Emerging Technology Fund CEO Sunne McPeak: CETF wants the CPUC “to require fair, reasonable and comparable public benefit contributions from CenturyLink-Level 3 as has been committed by all other companies doing business in California and seeking approval for a corporate consolidation that reduced market competition.” The Utility Reform Network, one of the consumer groups that signed the settlement, supports the proposed decision and urges quick approval, Managing Director-San Diego Christine Mailloux said: "While TURN does not like to see further consolidation in the wholesale market, we think that the settlement terms and the companies' commitments to continue offering middle mile and backbone services means consumers will see broadband deployment and advanced services throughout the state." California is the last state OK that CenturyLink and Level 3 need; the New Jersey Board of Public Utilities said yes last month (see 1708230044). The FCC’s 180-day shot clock Friday remained paused at Day 170. CenturyLink didn’t comment.
Level 3’s $34 billion sale to CenturyLink “has merit and should be approved,” the California Public Utilities Commission said in a proposed decision released Friday. The CPUC said it may vote as soon as the commissioners' Oct. 12 meeting on the draft order approving a June 30 settlement agreement between the companies and some consumer groups (see 1708170022). The settlement "meets the requirements for approval in that it is reasonable in light of the record, consistent with the applicable law, and in the public interest,” the proposed decision said. "The combined company will be enabled to offer wholesale and enterprise customers a broad range of services that they currently provide individually.” Customers will benefit from settlement conditions including “the commitment for California-specific capital expenditures over the next three years of at least $323 million,” it said. The companies should invest more because the committed amount is less than what the companies invested earlier, said California Emerging Technology Fund CEO Sunne McPeak: CETF wants the CPUC “to require fair, reasonable and comparable public benefit contributions from CenturyLink-Level 3 as has been committed by all other companies doing business in California and seeking approval for a corporate consolidation that reduced market competition.” The Utility Reform Network, one of the consumer groups that signed the settlement, supports the proposed decision and urges quick approval, Managing Director-San Diego Christine Mailloux said: "While TURN does not like to see further consolidation in the wholesale market, we think that the settlement terms and the companies' commitments to continue offering middle mile and backbone services means consumers will see broadband deployment and advanced services throughout the state." California is the last state OK that CenturyLink and Level 3 need; the New Jersey Board of Public Utilities said yes last month (see 1708230044). The FCC’s 180-day shot clock Friday remained paused at Day 170. CenturyLink didn’t comment.
New Jersey may soon approve CenturyLink’s acquisition of Level 3, and California’s review may wrap in October, said stakeholders and observers. The companies have all other state OKs but also need FCC approval. The companies agreed to settlements with consumer representatives in New Jersey and California, but a VoIP provider and a nonprofit focused on broadband adoption are challenging the deal at the California Public Utilities Commission. CenturyLink still aims to close the $34 billion buy by the end of Q3, a spokeswoman said.
New Jersey may soon approve CenturyLink’s acquisition of Level 3, and California’s review may wrap in October, said stakeholders and observers. The companies have all other state OKs but also need FCC approval. The companies agreed to settlements with consumer representatives in New Jersey and California, but a VoIP provider and a nonprofit focused on broadband adoption are challenging the deal at the California Public Utilities Commission. CenturyLink still aims to close the $34 billion buy by the end of Q3, a spokeswoman said.
Chapter 11 bankruptcy does not protect importers from Section 592 penalty claims filed by the government at the Court of International Trade, CIT said in a decision issued Aug. 10. While judicial claims are generally paused during bankruptcy to give the debtor a chance to repay debts or reorganize, Section 592 penalty claims are exempt from those protections because they are meant to protect public welfare and serve a public policy purpose, CIT said.
One big question on net neutrality is whether Chairman Ajit Pai will have the votes he would need to approve rules based on Communications Act Section 706 authority after Title II is repealed. Commissioner Mike O’Rielly is seen as, at best, dubious about this and may not vote for the entire order. Commissioner Mignon Clyburn isn't expected to vote yes on any part of the eventual Pai proposal.
One big question on net neutrality is whether Chairman Ajit Pai will have the votes he would need to approve rules based on Communications Act Section 706 authority after Title II is repealed. Commissioner Mike O’Rielly is seen as, at best, dubious about this and may not vote for the entire order. Commissioner Mignon Clyburn isn't expected to vote yes on any part of the eventual Pai proposal.
Regional carriers ATN and Blue Wireless said the FCC should have a Mobility Fund Phase II auction as soon as possible, in a meeting with aides to Chairman Ajit Pai. “The phase-down of legacy support has been paused since June 30, 2014, and the legacy system is distributing over $48 million per month in support that ‘does not efficiently serve the nation,’” the companies said in a filing in docket 10-208. “That funding is not going to expand service to unserved areas that desperately need mobile broadband for public safety and economic development.” FCC commissioners approved an MF-II order at their Feb. 23 meeting (see 1702230042), which projects an MF-II auction next year.
The New York Public Service Commission canceled hearings in its Verizon copper probe while the parties talk settlement. Verizon last week asked the PSC to press pause to allow the talks to proceed (see 1706130036). In a Tuesday ruling, New York PSC Administrative Law Judge Sean Mullany agreed to stay the litigation schedule, canceling hearings set for June 26.
CenturyLink and Level 3 told the FCC they will respond "shortly" to staff requests for more information about CenturyLink's planned buy of Level 3. The companies intend to produce information to "support their conclusions that competition in the provision of long-haul transport and business data services" won't be harmed due to the deal, and to substantiate "benefits, efficiencies, and synergies," said their filing, posted Tuesday in docket 16-403, on a meeting with commission staffers Thursday. On June 9, the agency paused its nonbinding 180-day review clock on Day 170 to await further filings by the license-transfer applicants (see 1706120032). Meanwhile, three providers of VoIP and other IP services -- commio, Fractel and VoIP Innovations -- said in recent filings (here, here, here) they're concerned the deal would remove Level 3 as an independent provider of wholesale switching and transport ("access homing tandem") services for customer-owned phone numbers. The three companies believe the only national providers of such services are Level 3, Peerless and Inteliquent. Fractel said that market is "minimally competitive" and just "one merger away from no competition at all." They asked the FCC to condition approval of the deal on a requirement that Level 3 or its successor "continue to offer at reasonable prices and on a nationwide basis wholesale switching and transport services for customer owned telephone numbers." CenturyLink and Level 3 didn't comment Tuesday on those concerns.