ST Telemedia and Global Crossing Secure Final Regulatory Approval

The FCC voted to approve Global Crossing's application for transfer of control to ST Telemedia. Global Crossing subsidiaries hold FCC domestic and international Section 214 authorizations, interests in submarine cable landing licenses and certain radio licenses. In considering the application, the FCC "found that the continued operation of the Global Crossing subsidiaries will benefit competition by preventing discontinuance of service and providing customers choices among providers of telecommunications." The FCC also concluded that "no anticompetitive effects will result from the transaction."


A newly constituted Global Crossing is expected to emerge from bankruptcy protection shortly. ST Telemedia is investing $250 million for a 61.5% ownership position. Global Crossing creditors will receive a 38.5% equity interest.


In a counter view, FCC Commissioner Michael J. Copps said approval of this transaction "flies in the face of the historic transition to privatization that has done so much to transform global business in recent years." He noted that ST Telemedia, through a complicated set of holding companies, is wholly owned by the government of Singapore.
http://www.globalcrossing.com