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AT&T and Sprint Press Ohio PUC to Halt Proposed GTE-Bell Atlantic Merger

Strategic Insights

— 2 min read

A proposed merger between GTE Corp. and Bell Atlantic Corp. that would create a combined local exchange carrier with 63 million lines in 38 states has drawn fire from AT&T Co. and Sprint Corp. In a meeting with the Ohio Public Utilities Commission (PUC), AT&T and Sprint urged the regulatory body to hold formal hearings on the merger, which they claim would cripple the prospects for local phone competition and stifle innovation in Ohio.

Key Takeaways:

  • AT&T and Sprint have expressed strong opposition to the proposed merger between GTE Corp. and Bell Atlantic Corp., citing concerns that it would stifle local phone competition and innovation in Ohio.
  • The Ohio PUC was urged to hold formal hearings on the merger, which could potentially stop the deal from taking place.
  • Sprint made a similar request of the Ohio PUC in the case of the proposed merger of SBC Corp. and Ameritech Corp. earlier this year, and it announced within about five weeks that it would hold such a hearing.
  • The regulatory body does have the authority to forbid such a merger, at least within the boundaries of Ohio, or impose certain conditions that the companies would have to meet to go ahead with the deal.
  • Ellen D'Amato, Sprint vice-president for state external affairs, argued that the merger should not be allowed to go ahead at least until GTE shows that it has opened its market to competition.
  • William Davis, AT&T's chief regulatory counsel in the central region, took the same position, claiming that the merger should not be "seriously entertained" until the local market in Ohio is fully opened to competition.

Statistics:

  • 63 million lines: The combined number of lines that the proposed merger between GTE Corp. and Bell Atlantic Corp. would create in 38 states.
  • 198: The number of times that Sprint officials have reportedly asked the Ohio PUC to hold formal hearings on the proposed merger.
  • 5 weeks: The time it took for the Ohio PUC to announce that it would hold formal hearings on the proposed merger between SBC Corp. and Ameritech Corp. after Sprint made a similar request.
  • 38 states: The number of states where the proposed merger between GTE Corp. and Bell Atlantic Corp. would have a combined local exchange carrier with 63 million lines.
  • 1996: The year that the Telecommunications Act was passed, which includes provisions related to local phone competition.

Sources:

  • Newsbytes News Network, "AT&T, Sprint Press Ohio PUC on GTE-Bell Atlantic Merger", November 4, 1998.
  • Oriano Pagnucci, AT&T, 312-230-4888, e-mail pagnucci@att.com.
  • Tom Hopkins, AT&T, 312-230-4889, e-mail thomashopkins@att.com.
  • James Fisher, Sprint, 202-828-7406, e-mail james.fisher@mail.sprint.com.
  • Dick Kimmins, Ohio Public Utilities Commission, 614-466-7750.

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