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Hearings & Rulemakings > Hearings > UTC ok's $1.25 million public purpose fund from Verizon-MCI merger On May 17, 2006, the commission selected the Greater Everett Community Foundation to administer a $1.25 million public-purpose fund created as a condition of the merger of Verizon and MCI. (Docket No. 050814. For more information, see our press release, or the "Documents" link below.)
The commission approved the merger of Verizon with MCI on Dec. 23, 2005. The UTC modified a settlement agreement filed on Oct. 21 by four parties in the case. Verizon and MCI filed the original merger application with the UTC on May 27. The merger unites a Regional Bell Operating Company (RBOC) providing primarily local phone service with the nation’s first independent long-distance carrier. Under terms of the merger, MCI, formerly known as WorldCom Inc., will become a wholly-owned subsidiary of Verizon Communications. The merger does not change the current rates or services offered in Washington by subsidiaries of either company. Under the settlement agreement, Verizon NW agrees not to request another rate increase for local-phone service until June 30, 2009. Under an earlier agreement, Verizon will be able to raise local-phone rates by $1.47 a month in mid-2007. In exchange for merger approval, the UTC imposed several conditions on the new phone company. They include:
“The direct benefit will be enjoyed not only by outlying subscribers, but also by government, business, and residential customers with the need to reach people and businesses within the county, without paying a toll charge,” said the commissioners in the order. The commission also will require MCI customers to be notified that Verizon is purchasing the company. Verizon NW must waive a $4.50 fee for customers who would like to change their local or interstate long-distance provider. “Consumers should be clearly informed that they have the option to choose another service provider should they prefer not to take service from Verizon,” the commissioners said in their decision. “This proposed notice would tell customers that the merger has occurred, that they are now being served by a Verizon subsidiary, that they have the right to move to a different provider if they wish to do so, and that some costs will be waived if they choose to do so.” Other conditions of the merger include requiring Verizon to report its progress on working with all telecommunications carriers, including Internet-phone companies, to provide emergency 911 service. In addition to the conditions imposed by the UTC, the FCC has required Verizon to freeze for 30 months the wholesale prices it charges competitors to lease certain high-capacity business phone lines. The new company must also guarantee for two years that it will sell its high-speed Internet access (DSL) without requiring customers to buy phone service as well. The commission received 11 public comments on the proposed merger, four in support and three opposing it. Three others supported greater availability of broadband services. Posted/updated: 05/14/2007 Document list: 050814 Documents Schedule Orders All |
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