Verizon Defends Planned Buy of XO in New York
Verizon buying XO Communications won’t reduce competition, and no conditions are necessary, Verizon said in a Monday New York Public Service Commission filing. It responded to comments by Windstream, which opposes the deal without significant conditions to protect competition, particularly…
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in the business data services market. “In fact, the proposed transaction will create substantial public-interest benefits,” Verizon said. "Attempting to prevent or delay the transaction, or to hobble it through unnecessary and burdensome conditions, will put those public-interest benefits at risk, and frustrate Petitioners’ efforts to enhance their networks to the benefit of customers and competition.” The deal will expand and enhance Verizon’s fiber facilities, with benefits for the company’s wireless network, the company said. Current XO customers will gain access to Verizon products and services, it said: There will remain “ample competitive alternatives following this transaction.” The combination won’t threaten use of unbundled copper loops for Ethernet-over-copper services, nor encourage price squeezes, as Windstream has claimed, Verizon said. “Verizon will have neither the incentive nor the ability to raise rivals’ costs due to the acquisition because … numerous competitive alternatives to XO’s services will remain available in virtually all locations.” Verizon and XO are also defending their proposed deal at the FCC (see 1605310038).