FCC Approves SBC-Ameritech Merger Subject To Conditions
Divestiture of alarm monitoring operations not a condition of merger

On October 6, 1999, the Federal Communications Commission (FCC) approved the merger of Ameritech Corp. to SBC Communications Inc. subject to 30 unprecedented conditions which are seen as unenforceable by many. The FCC believed that, with these conditions, the merger of SBC and Ameritech was in the public interest.

The FCC's Order stated that Ameritech is not prohibited by statute from continuing its alarm monitoring operations. The Alarm Industry Communications Committee (AICC) had urged the Commission to interpret the statute to prohibit SBC from becoming affiliated with the alarm-monitoring subsidiary of Ameritech. Although the FCC apparently did not agree with this analysis, nothing in the decision affect the FCC’s review of the unlawful acquisition of alarm monitoring companies which is still pending at the FCC.

Several of the Commissioners expressed concerns about the unusual procedures followed during the merger consideration and with other aspects of the decision.

According to Danny Adams, AICC Legal Counsel, "we are disappointed that the "divestiture" issue was not addressed adequately by the FCC. This is the first time in the FCC’s 65-year history that the Commission has allowed a company to be relieved of a restriction as a result of its acquisition of another company. "

Click on the underlined reference for more information about the 30 conditions and the opinions of FCC Chairman William E. Kennard and Commissioners Susan Ness, Gloria Tristani, Michael K. Powell, and Harold Furchtgott-Roth.