DOJ probing WorldCom, MCI
Regulators continue to investigate the proposed WorldCom-MCI merger, issuing subpoenas in an attempt to measure traffic on the companies' networks.
Sprint and GTE both said today that they received detailed civil subpoenas that attempt to measure traffic on their high-capacity Internet networks during the first week of March.
The information likely will be used to evaluate claims made by Sprint and other competitors that the proposed merger would result in WorldCom carrying more than half the traffic on the Internet. They warn that the concentration will allow WorldCom to raise rates dramatically and deny small Internet service providers access to the high-capacity link to the Net, known as its backbone.
"We think there's very serious concern about potential dominance of the Internet backbone market," Eisenberg said. With the merger, "you're taking what is a successful and well-evolving network of networks and moving toward a network of one."
WorldCom executives were not immediately available for comment. But in past statements, the company's executives have taken issue with claims that the merger would harm competition on the Net. "It is hard for us to imagine anybody controlling the Internet," WorldCom chief operating officer John Sidgmore told CNET's NEWS.COM last month, adding that the that the information investigators are gathering will bear out his assertion. "Those facts would support that this merger is procompetitive, not anticompetitive. At the end of the day, we will pass through."
In addition to scrutiny from the Justice Department, the European Commission and the Federal Communications Commission are also looking into the merger. On Friday, the Consumer Project on Technology--which is aligned with consumer advocate Ralph Nader--is holding a conference on the matter.
Besides backbone providers, the Justice Department also appears interested in talking to other types of Internet providers. IBM--which operates IBM Global Network--said it also received a civil subpoena in relation to the investigation. PSINet received a request as well, said a person familiar with the matter.