FCC Deferral Request

LETTER submitted by US DOJ

deferral letter

2017-01-18

This document pretains to SCL-T/C-20161212-00023 for Transfer of Control on a Submarine Cable Landing filing.

IBFS_SCLTC2016121200023_1166583

Federal Communications Commission FCC 17-142 Before the Federal Communications Commission Washington, D.C. 20554 In the Matter of ) ) Applications of Level 3 Communications, Inc. and ) WC Docket No. 16-403 CenturyLink, Inc. For Consent to Transfer Control ) of Licenses and Authorizations ) MEMORANDUM OPINION AND ORDER Adopted: October 27, 2017 Released: October 30, 2017 By the Commission: Chairman Pai and Commissioners O’Rielly and Carr issuing separate statements; Commissioner Clyburn dissenting and issuing a statement; Commissioner Rosenworcel approving in part, dissenting in part and issuing a statement. TABLE OF CONTENTS Para. I. INTRODUCTION .................................................................................................................................. 1 II. BACKGROUND .................................................................................................................................... 4 A. Description of the Applicants .......................................................................................................... 4 1. CenturyLink, Inc. ...................................................................................................................... 4 2. Level 3 Communications, Inc.................................................................................................... 5 B. Description of the Transaction ......................................................................................................... 6 III. STANDARD OF REVIEW AND PUBLIC INTEREST FRAMEWORK ............................................ 8 IV. QUALIFICATIONS OF APPLICANTS AND COMPLIANCE WITH COMMUNICATIONS ACT AND FCC RULES AND POLICIES .................................................... 12 V. POTENTIAL PUBLIC INTEREST HARMS ...................................................................................... 15 A. Loss of Level 3 as a Competitive Provider of Last-Mile Business Data Services and Long-Haul Transport ..................................................................................................................... 17 1. Loss of Facilities-Based Fiber Competition for Last-Mile BDS in CenturyLink’s Incumbent LEC Region. .......................................................................................................... 18 2. Loss of Facilities-Based Fiber Competition Outside of CenturyLink’s Incumbent LEC Region. ............................................................................................................................ 26 3. Loss of Level 3 as an Independent Provider of Lit and Dark Long-Haul Fiber Transport Services. .................................................................................................................. 29 B. Other Issues.................................................................................................................................... 34 C. Loss of Level 3 as a Competitive Provider of Transit Service ...................................................... 43 D. Loss of Level 3 as an International Submarine Cable Transport Provider .................................... 48 VI. ANALYSIS OF POTENTIAL PUBLIC INTEREST BENEFITS....................................................... 50 A. Claimed Public Interest Benefits ................................................................................................... 52 1. Claims that the Combined Company Will Have Greater Reach and be a Stronger Competitor. .............................................................................................................................. 52 2. Claims of a More Extensive, Robust Network and Expanded Array of Services. .................. 54 3. Claims that the Combined Company Will Benefit from Continuity in Experienced Leadership and Success in Prior Acquisition Integration. ....................................................... 59 4. Claims of an Improved Financial Profile, Including More than $975 Million in Annual Run-Rate Synergies. ................................................................................................... 61


Document Created: 2017-01-18 09:08:21
Document Modified: 2017-01-18 09:08:21
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