US telco SBC Communications has kicked off an expected flurry of mergers between long distance and local operators.
But another telecomms mega-merger, between MCI and Worldcom, has been hit by fresh controversy.
The US telecomms union, Communications Workers of America, slams the proposed Worldcom/MCI mergerfor "violating the pro-competitive intent of the US Telecomms Act", and "stifling" local and long distance competition. The union also claims the merger would cut job growth in the industry by 75,000 jobs over the next four years.
Meanwhile SBC Communications, which had been rumoured to be in acquisition talks with AT&T, is to merge with local operator, Southern New England Telecommunications. SBC is a long distance telco, which co-owns with BT a French mobile operator called Cegetel.
After the collapse of AT&T's supposed talks with SBC, the former is now said to be considering a $12 billion takeover bid for another local operator called Teleport.
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