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À ?        ? ? ?      ?    8?       ? ? ~  ?  ? ?  ? ?  ?    ?  ? ??  ?   ?   ? ??  ?   ?  ? ? ? ? ? ? ? ? ?  ? ?   ?   ?   ?  ?  ? ?? ? ? ??? ~?   ? ? ? ?? ? ??  ? ? ??  ?  ?  ?À? ? ?? ?? ?? ? ? ? ?? ?? ??? ? ?? ?? ? ? ?? ? ?? ??  ??  ???  ?  ?  ? ?? ??  ?  ?  >?  ?  ?? - ?: 9 4ǀ? ?4 4 4? 4 4 4 4 5? 5 4 ?4 ?4 5 5 5 ?1? ?1 ?1 ?1 ?0 1x 1 / /? ?/π / / / .? ??.? ?. <. - - - --,,?,,-?----?+?* ??* ?+,>,,,?,?,?,--.?.?.?.%?À%%%%%%?%%?%?%?%&&'''?'?'?''?'())))x)?)?)?))*+++ǀX? π? ? ??? ##?&#&#? %#0%#x?%#?x%#?|%#?%#?%#?%#?%#%#%#%# ?%# $# ?$#?$# $# ?$# $#$#$#$#$#$#$#$###??####?##?##?#$ ?#$'$?'$'*'*'+'++XC X-#XP\  P6QVXP#L" X-  `!$#K2pPG;#News media Information 202 / 4180500 `$FaxOnDemand 202 / 4182830 ` $Internet: http://www.fcc.gov `o!$0 ftp.fcc.gov  L-#&h2pPG;Pa&#Federal Communications Commission 1919 M Street, N.W. Washington, D.C. 20554  c#^2pPG;#y:  dddy  L9{i#^2pPG;##,92pPG;,#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. Cir. 1974).  y: 5 dddhy  L9i U 1  1  Figure 1  Figure 1 y!HH,,@Uddfcclogo.wpgHHy! X ddR8u H#S2pPG;# NEWS L  Report No. CC 9826 COMMON CARRIER ACTION`(#September 14, 1998  X- FCC Approves Merger of WorldCom and MCI ă (CC Docket No. 97211) xThe Commission today approved the transfer of communications licenses and authorizations from MCI Communications Corp. to WorldCom, Inc. subject to two conditions:  X_-MCI must complete divestiture of its Internet assets prior to the close of its merger with WorldCom, and the transfer of MCI's direct broadcast satellite (DBS) license to WorldCom is subject to the outcome of pending applications for review of the initial license grant to MCI. The Commission found that, with these conditions, the merger will serve the public interest. xIn particular, the Commission found that WorldCom and MCI demonstrated that the merger is consistent with the "procompetitive, deregulatory" framework of the Telecommunications Act of 1996 and may produce tangible benefits to consumers. The Commission concluded that the merger will result in the combination of certain complementary assets, including MCI's national brand name, marketing expertise, and broad residential base, as well as WorldCom's extensive local exchange facilities, small and medium business customer base, and foreign networks. This combination of assets may enable the merged company to expand its operations and enter into new local telephone markets more quickly than either company could on its own. xIn its public interest analysis, the Commission concluded that the merger may produce new choices and increased competition that will benefit consumers, including residential customers. The Commission expressly noted letters submitted by the chairmen of WorldCom and MCI that represent commitments not to abandon the residential long distance market, to augment their efforts in the residential local market, and to offer residential customers a total  X-package of services including local, long distance, wireless, international, and Internet. The Commission stated that it expects parties to be forthright in their communications with the Commission and to take seriously commitments made in such communications. In this regard, the Commission noted that it will be monitoring MCI WorldCom's progress, along with the progress of other companies, as the combined firms bring their considerable assets and capabilities to bear in providing new choices to residential customers. x xIn today's decision, the Commission considered the competitive effects of the merger on the provision of telephone services: domestic long distance, international long distance, Internet, and local. In doing so, the Commission reached the following conclusions:" 0*F"F" "Ԍ"x X-oXx The merger will likely have no anticompetitive effects on the market for domestic long distance service. Although the merger combines the second and fourth largest long distance companies, the Commission concluded that the trend toward increased long distance competition is expected to continue in light of the construction of new long distance networks.(#  X_-oXxThe merger will likely have no anticompetitive effects on the market for international long distance service given the substantial amount of transoceanic cable being built each year and the relative ease with which new firms can enter this market.(#  X -oXxThe merger will likely have no anticompetitive effects on Internet transmission services in light of the anticipated divestiture of MCI's Internet assets.(#  X -oXxThe merger will likely have no anticompetitive effects on the market for local telephone service given the continued dominance of incumbent local telephone companies and the limited market entry of WorldCom and MCI to date. Indeed, the Commission found that the merger will create a stronger local service competitor than either of the companies would provide absent the merger. (# xAction by the Commission, September 14, 1998, by Memorandum Opinion and Order (FCC 98 .%~ 225 .%~ ). Chairman Kennard, Commissioners Ness, Powell, and Tristani, with Commissioner FurchtgottRoth concurring, Commissioner Tristani dissenting in part, and  X-Commissioners FurchtgottRoth, Powell, and Tristani issuing separate statements. DFCC xNews media contact: Rochelle Cohen at (202) 4180253. xCommon Carrier Bureau contact: Michelle M. Carey at (202) 4181557. xTTY: (202) 4182555.