Comcast is keen on enhancing its SMB service capabilities, so now it's asking the FCC to approve its pending acquisition of Chicago-based CLEC Cimco Communications. Since the FCC's decision has to get the approvals of approximately 274 local franchising authorities, the process is open to comment.
The deal could be blocked under the terms of the Communications Act of 1934 if the FCC concludes the merger is anti-competitive and won't serve public interest. Of course, Comcast says the proposed deal does not violate the rules. In its filing with the FCC, Comcast said the deal has "no anti competitive effects, because Cimco and Comcast have focused their voice services on different market segments and for the most part do not compete with each other."
If the deal does go through, Comcast will be able to expand its business service presence in various Midwest states, including Illinois (a major focus on Chicago), Indiana, Michigan, Ohio and Wisconsin. In addition, Comcast would also gain long-distance communications service capabilities in 40 other states and local voice service business customers in 298 service areas.
For more:
- CED has this article
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