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[IP] Phone Users May Get None of Merger Savings





Begin forwarded message:

From: Dewayne Hendricks <dewayne@xxxxxxxxxxxxx>
Date: October 20, 2005 6:36:06 PM EDT
To: Dewayne-Net Technology List <dewayne-net@xxxxxxxxxxxxx>
Subject: [Dewayne-Net] Phone Users May Get None of Merger Savings
Reply-To: dewayne@xxxxxxxxxxxxx


Phone Users May Get None of Merger Savings
By James S. Granelli, Times Staff Writer

The Los Angeles Times reports that California regulators Wednesday tentatively blessed two giant telephone industry mergers, but customers won't see much of the billions of dollars the companies expect to save. SBC Communications Inc.'s $16-billion acquisition of AT&T Corp. and Verizon Communications Inc.'s $8.5-billion purchase of MCI Inc. could reduce their expenses in the state by a combined total of up to $2.7 billion, consumer advocates say. State law requires phone companies to split any such savings with customers, as SBC did when it bought Pacific Bell parent company Pacific Telesis Inc. in 1997. But draft decisions by Public Utilities Commission members Susan P. Kennedy and Michael R. Peevey would exempt the companies from that requirement, prompting outrage from consumer advocates.

<http://www.latimes.com/business/printedition/la-fi- sbc20oct20,1,3528875.story?coll=la-headlines-pe-business>

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