The US communication workers union has urged the Federal Communications Commission (FCC) to block the proposed merger between MCI and Worldcom, claiming it would damage Internet competition and cut consumer benefits.
The Communication Workers of America union said the merged company could "control the price of and potentially restrict" Internet access as it would own 63 per cent of the Internet backbone, in a FCC filing.
"Because the merged entity would own some of the largest Internet Service Providers (ISPs)? it would be able the use this bottleneck control in discriminatory fashion, adopting pricing policies that favour interconnection with its own ISPs through cross-subsidies, predatory pricing or other practices," the union said.
Union president Morton Bahr said the deal is anti-competitive and could cost 75,000 jobs in the US by 2002. The union also said the Internet is set to replace the telephone network as the predominant communications infrastructure but MCI and Worldcom?s business plan shows it would target high-value business clients and drive up charges for residential customers.
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