[Congressional Record Volume 145, Number 54 (Tuesday, April 20, 1999)]
[Extensions of Remarks]
[Page E702]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                   REGARDING THE SBC-AMERITECH MERGER

                                 ______
                                 

                       HON. JESSE L. JACKSON, JR.

                              of illinois

                    in the house of representatives

                        Tuesday, April 20, 1999

  Mr. JACKSON of Illinois. Mr. Speaker, there have been a number of 
recent, very positive developments involving the proposed merger of 
Ameritech and SBC Communications. I was delighted when the Justice 
Department gave its green light to the merger on March 23rd. This 
approval followed a thorough review by the Justice Department and 
confirms that the merger is not anti-competitive.
  The merger approval by DOJ was followed by a favorable recommendation 
from a hearing examiner for the Illinois Commerce Commission. Then, 
just last week, the Public Utility Commission of Ohio formally voted to 
approve the merger. I would also note that the Rainbow-PUSH Coalition 
endorsed the merger on March 29th. In announcing its support, the 
Coalition said, ``Rainbow PUSH found that these companies are truly 
concerned about implementing corporate practices that favor workers and 
consumers, creating employment opportunities and fostering small 
business growth.'' Additionally, the Coalition pointed out that the 
merger enjoys strong, broad-based support from organized labor.
  Ameritech announced on April 6th that, consistent with the conditions 
imposed on the merger by the Justice Department, it was selling half of 
its cellular properties to GTE Corp. for about $3.3 billion. One of 
GTE's principal allies in this transaction is Georgetown Partners, a 
minority owned and operated company. Assuming the merger is approved, 
Georgetown Partners will become one of the most significant minority-
owned communications firms in the United States.
  While all of these developments are extremely positive, Mr. Speaker, 
I must express my strong concern over FCC Chairman Bill Kennard's 
recent action adding a new, and unprecedented, hearing process to the 
Commission's deliberations on the Ameritech-SBC merger. I appreciate 
the Chairman's desire for thoroughness, but I must question the 
fairness of injecting such a process in a deliberation that has now 
been before the FCC for almost eleven months.
  In conclusion, I would note that as long as this merger remains in 
limbo before the FCC, it substantially harms the competitive positions 
of both companies in the national and international markets. I hope we 
keep in mind that, between them, Ameritech and SBC employ more than 
200,000 people. Many of these people are my constituents in the 2nd 
District of Illinois. I strongly encourage the FCC to consider the 
Ameritech-SBC merger with the same efficiency and fairness that it has 
considered other recent mergers in the highly competitive 
telecommunications industry.

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