WASHINGTON — U.S. regulators on Monday approved SBC Communications' takeover of AT&T and Verizon Communications' purchase of MCI, removing the final national hurdles for the multibillion-dollar deals. By a 4-0 vote, the Federal Communications Commission said yes to the mergers but added several conditions. Among them, it required that SBC and Verizon freeze the wholesale prices they charge competitors to lease high-capacity business lines and to guarantee that they will sell their Internet access as a standalone service so customers are not forced to buy local phone service as well. Several state regulatory agencies still must sign off on the deals. The SBC acquisition of AT&T is valued at $16 billion; the Verizon-MCI deal is said to be worth about $8.5 billion. The FCC approval came after a weekend of negotiations. The commission had scheduled a vote for last Friday, at the agency's regular monthly meeting, but then postponed it to continue talks. The Justice Department cleared the mergers last week, with more limited conditions than those placed on the companies by the FCC. Critics of the deals had complained that asset sales in overlapping areas were needed to ensure healthy competition in the industry, but U.S. regulators declined to approve such requirements for either company. Justice Department approval was contingent on Verizon and SBC leasing to rivals high-capacity lines serving business customers in 19 metropolitan areas. AT&T and MCI dominate the market for business customers, and the mergers would enhance that base for the two Baby Bells, Verizon and SBC. The deals would also expand their national and international presence. Consumer advocates and Bell rivals have complained that the competition for the Bells that AT&T and MCI would have provided in many markets would be virtually eliminated by the mergers and the result would be limited choices for consumers and higher prices.
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