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MCI-BT merger OK likely
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August 20, 1997: 1:23 p.m. ET
FCC expected to clear transatlantic telecom partnership this week
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NEW YORK (CNNfn) - The Federal Communications Commission is expected to announce this week its decision on the $20 billion merger of British Telecommunications PLC and MCI Communications Corp.
Approval seems likely, since FCC Chairman Reed Hundt has voiced his support for the deal. "I personally believe we can and should approve the BT/MCI merger as in the public interest," said Hundt.
MCI paved the way for approval by offering concessions allowing non-British carriers access to British Telecom's network.
In Britain, BT customers must use BT's long-distance service. To use another long-distance carrier, they are forced to dial a special three or four digit prefix each time they call long-distance. However, U.S. phone customers can pre-select a long-distance carrier and can dial the number without any other prefixes.
MCI last month committed to equal access concessions that would make extra dialing by BT customers unnecessary if they want to use another carrier. British Telecom said it will go along with the concession.
FCC approval is the last hurdle for the merger. MCI then can turn its attention to its attempt to break into the local telephone market, which the company said last month could cost it up to $800 million.
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British Telecom
MCI
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