FCC approved WorldCom’s acquisition of Intermedia Wed., subject t...

FCC approved WorldCom’s acquisition of Intermedia Wed., subject to only one condition -- that Intermedia and its subsidiaries be regulated as dominant in their provision of service on U.S.-Brazil route. Commission action transferred control of wireless, international and domestic wireline licenses from Intermedia to WorldCom. FCC’s action was somewhat perfunctory because WorldCom is required to divest all of Intermedia except its controlling interest in Web-hosting company Digex under consent decree with Dept. of Justice (CD Nov 20 p4). FCC said that it therefore viewed this order as “interim” transfer of licenses and authorizations. It said “once a third-party purchaser is identified, we will review the subsequent transfer of control of the Intermedia assets to ensure the public interest is served.” Agency rejected AT&T concern that merger would give WorldCom too much dominance over Internet backbone market. FCC pointed out that it didn’t regulate Internet Web hosting but said that, regardless, it disagreed with AT&T. WorldCom spokesman said company still needed “handful of state approvals” before deal could go through.