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Telecom industry news is abundant in the information age. Yesterday, we told you about a private meeting that occurred between FCC officials and Alltel representatives who disclosed their concerns over the credit crisis and its impact on operations and the proposed Verizon merger.
Now, one reliable industry publication we track is reporting renewed opposition to the Verizon-Alltel transaction.
Chief executives of small and regional wireless carriers have asked the FCC to postpone a decision on the pending $28.1 billion acquisition, which is scheduled to be considered at the FCC’s upcoming Nov. 4 meeting.
Top executives from LCW Wireless, Leap Wireless, Mobi PCS, NTELOS, Revol Wireless and SouthernLinc Wireless have signed a letter asking for a delay.
The Organization for the Promotion and Advancement of Small Telecommunications Companies, the Rural Telecommunications Group and the National Telecommunications Cooperative Association have also signed the letter, Talk Business has learned.
The push is perhaps the most coordinated yet by smaller carriers to win delay of the Verizon-Alltel deal, which was announced in June.
"Our respective companies and associations have submitted thousands of pages of comments documenting why the merger should not be approved until a host of related issues are resolved including roaming, spectrum concentration, and handset exclusivity," the letter said. "Approving this merger without debating and addressing those critical issues is not in the public interest and will be anti-competitive and anti-consumer."
The carriers said approving the merger at the meeting and deferring a decision on other issues "is equally unacceptable."
Roaming agreements seem to be at the heart of the opposition to the merger. Verizon Wireless has offered to honor Alltel’s existing roaming agreements, but this new unified effort by the smaller firms could result in a condition for merger approval that might force an extension of the current terms of those contracts.
FCC officials said the merger order still appears likely to be approved at the November meeting. However, an agency official says that FCC Chairman Kevin Martin appears more likely to agree to additional merger stipulations on open access than on insulating smaller carriers from the loss of Alltel as a partner.
Six consumer advocacy organizations have also joined forces seeking conditions on the merger. You can read more at this link.
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