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Federal Communications Commission
1919 - M Street, N.W.
Washington, D.C. 20554
News media information 202 / 418-0500
Fax-On-Demand 202 / 418-2830
Internet: http://www.fcc.gov

This is an unofficial announcement of Commission action. Release of the full text of a Commission order constitutes official action. See MCI v. FCC. 515 F 2d 385 (D.C. Circ 1974).

Report No. CC 98-22 COMMON CARRIER ACTION July 23, 1998


The Commission has approved the transfer of communications licenses and authorizations from Teleport Communications Group, Inc. to AT&T Corp., thereby granting the companies' merger application. In so doing, the Commission noted that the merger will likely produce a competitor that can more quickly provide business and residential consumers with a choice of local telephone service providers.

In accordance with the Communications Act, merger applicants must persuade the Commission that their proposed merger will serve the public interest. In this case, the Commission concluded that the merger is unlikely to have any anticompetitive effects. Moreover, the Commission found that the two companies' assets and capabilities are largely complimentary and, as a result, the combined entity may likely be able to enter the local telephone market quicker. Based on these determinations, the Commission concluded that the merger is in the public interest.

AT&T is the largest long distance and international telephone company in the United States. Teleport is one of the nation's largest providers of competitive local telephone service. As a result of the merger, Teleport will become a wholly-owned subsidiary of AT&T.

Action by the Commission, July 21, 1998, by Memorandum Opinion and Order (FCC 98-169). Chairman Kennard, Commissioners Ness, Powell, and Tristani, with Commissioner Furchtgott-Roth concurring and issuing a separate statement.


News Media contact: Rochelle Cohen at (202) 418-0253.

Common Carrier Bureau contact: Alexander Starr at (202) 418-1580.