The document discusses conditions that the Federal Communications Commission (FCC) places on mergers to determine if they are in the public interest. It notes that the FCC looks at broader public benefits beyond just competitive impacts. Conditions are often negotiated voluntarily but adopted officially by the FCC. Examples include interconnection requirements, video rollout obligations, and net neutrality commitments. Enforcement of conditions is variable, and requests to lift conditions are often granted.

1. FCC MERGER CONDITIONS William T. Lake WilmerHale Palo Alto and Washington VON.x, San Jose, CA March 17, 2008

2. Public interest standard Not just competitive harms as at DOJ Must make affirmative public interest showing: Contribute to competitive market Other affirmative public benefits

3. What this means for conditions Not just structural as at DOJ Behavioral conditions to address harms from merger Any other condition that promotes any FCC policy?

4. “ Voluntary” Conditions negotiated with FCC Submitted as voluntary commitments FCC adopts as conditions of merger approval Never a legal test

5. FCC uses Insulate policies from judicial review Roll out new policies Benefits du jour

6. Examples ILEC mergers: interconnection and rate freezes ILEC mergers: stand-alone ADSL service AT&T/BellSouth: video rollout in BS territory Cap USF claims unless you meet E911 accuracy

7. Net neutrality VZ/MCI: principles for 2 years AT&T/SBC: principles for 2 years AT&T/BellSouth: principles for 2 years Also no degradation or priorities for 2 years Comcast/TW/Adelphia: nothing Issue in current Comcast proceeding

8. No limits  silly season Donate $1 million to public safety charity Repatriate jobs 3000 jobs, 200 to NOLA Broadcast decency rules in space Can’t seek forbearance of conditions

9. Enforced? Complaints to FCC mostly dismissed or sitting FCC public notices seeking comment FCC doesn’t act SBC noncompliance payments 2000-2004 Requests to lift conditions Often granted

10. Worth the trouble?