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Thumbs up for BT-MCI
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August 21, 1997: 1:38 p.m. ET
FCC clears $22 billion merger as partners re-evaluate terms
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NEW YORK (CNNfn) - The Federal Communications Commission has approved the $22 billion merger between British Telecommunications PLC and MCI Communications Corp.
Approval had been expected since outgoing FCC Chairman Reed Hundt previously voiced his support for the deal on the grounds that it would serve the "public interest."
The final regulatory hurdle came even as the two companies develop plans to re-evaluate the transatlantic combination.
In a statement earlier Thursday, they announced they are reviewing the "economic terms of their existing merger agreement."
MCI paved the way for approval by, among other things, offering concessions allowing non-British carriers access to British Telecom's network.
In addition, BT recently agreed to accept a settlement rate of 7 cents a minute to terminate U.S.-outbound calls in the U.K.
BT has also agreed to sever all ownership ties to the U.K. government. The move will ensure that BT "will not enjoy any special advantage over other carriers," the FCC said.
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British Telecom
MCI
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