CenturyLink-Qwest merger gets FCC stamp, awaits Oregon

The Federal Communications Commission has approved the CenturyLink-Qwest Communications merger with conditions attached, leaving the Oregon Public Utilities Commission as the only regulatory body standing between the two telco mates and closure of the deal.

Oregon regulators reportedly are near to approving the merger as the parties finalize an agreement on the broadband-related conditions to be attached to the approval. CenturyLink and Qwest have been hoping to close their deal by April 1. The FCC stamp comes just a few days after FCC Chairman Julius Genachowski had presented the merger and attendant conditions to other FCC commissioners for consideration.

The conditions tied to FCC approval include, among others, a commitment to launch a broadband adoption program for low-income consumers throughout the affected 37-state territory. For a five-year period, qualifying households may get broadband starting at less than $10 per month—a self-imposed condition similar to one attached to the Comcast-NBC Universal deal--and a computer for less than $150.

The merging companies also agree to significantly increase the capacity of Qwest’s network to support at least 4 Mb/s downloads to at least 4 million more homes and businesses, and at least 20,000 more anchor institutions, such as schools, libraries, and community centers. The companies also are charged with more than doubling the number of homes and businesses that can get 12 Mb/s broadband, and more than tripling the number that can get 40 Mb/s.