DOJ to Clear CenturyLink-Level 3 With Divestitures; Team Telecom Cites LOA Commitments
DOJ agreed to clear CenturyLink's planned buy of Level 3 with conditions in a consent decree subject to court review, CenturyLink said Monday. "The consent decree requires the combined company to divest certain Level 3 metro network assets and certain…
Sign up for a free preview to unlock the rest of this article
Timely, relevant coverage of court proceedings and agency rulings involving tariffs, classification, valuation, origin and antidumping and countervailing duties. Each day, Trade Law Daily subscribers receive a daily headline email, in-depth PDF edition and access to all relevant documents via our trade law source document library and website.
dark fiber assets," said a company release. "The combined company is required to divest Level 3 metro network assets in three metro areas: Albuquerque, N.M.; Boise, Idaho; and Tucson, Ariz. ... The consent decree also provides that the combined company will divest 24 strands of dark fiber connecting 30 specified city-pairs across the country in the form of an Indefeasible Right of Use, a customary structure for such transactions. Because the fibers are not currently in commercial use, this divestiture will not affect any current customers or services." Separately, DOJ and other "Team Telecom" agencies said they wouldn't object to the transaction on national security, law enforcement and public safety grounds, provided that the FCC conditions approval on CenturyLink compliance with a letter of assurances (LOA). "After discussions with representatives of CenturyLink and Level 3 in connection with the [proposed transaction], the Agencies have concluded that the commitments set forth in the 2017 LOA will help ensure that those agencies with responsibility for enforcing the law, protecting the national security, and preserving public safety can proceed appropriately to satisfy those responsibilities," DOJ said in a letter in docket 16-403 Monday that said Justice had the concurrence of the Defense and Homeland Security departments (the LOA was attached). Among CenturyLink commitments: nominate an LOA security officer; establish points of contact for law enforcement; ensure its domestic communications infrastructure and operating personnel can comply with lawful electronic surveillance requests; take all reasonable steps to physically secure that infrastructure and prevent unauthorized access; report any information indicating "unauthorized third-party access to, or disruption or corruption of, a Covered Cable System" or "any material breach" of LOA commitments; and provide certain annual reports. The companies have said they expect the deal to close in mid-to-late October (see 1709120013). The FCC's nonbinding 180-day "shot clock" for review of the transaction remained paused on Day 170. DOJ didn't comment Monday.