Qwest-CenturyLink Merger Moves Ahead With FCC Conditions

The FCC formally approved the merger of Qwest Communications and CenturyLink on March 18, a $22 billion deal that will impact over 17 million telephone and 5 million broadband customers in 37 states.

The combined company will create a broadband adoption program and allot resources toward bridging the digital divide. Qualifying households will be eligible for $10 per month broadband service and a computer for less than $150. It will also make a significant annual commitment to marketing, outreach, and digital literacy training.

The deal also includes a provision for increasing the overall capacity of the Qwest network by upgrading existing lines, and bringing connectivity of at least 5 mbps to 4 million more customers within seven years. Of these new connections, 20,000 are expected to link anchor institutions such as schools and libraries to high-speed Internet. The new company also committed to build-out broadband capable of at least 12 mbps to 60 percent of its customers, and 40 mbps service to at least 30 percent or 5 million customers.

In addition, the FCC noted that the new CenturyLink plans to expand IPTV competitive video service in a number of markets.

FCC Memorandum and Order In the Matter of Applications filed by Qwest Communications International Inc. and CenturyTel, Inc.