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Pa. PUC Reviews ALJ OK for Verizon/XO

The Pennsylvania Public Utility Commission may OK Verizon/XO Communications without conditions. In an initial decision posted Tuesday, Deputy Chief Administrative Law Judge Mark Hoyer said the transaction benefits the state and poses no competitive harms. “Pennsylvanians live and work in…

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an interconnected world and therefore will benefit from being served by a single, more expansive network that reaches more places and provides enhanced services,” Hoyer wrote. “That is particularly true of Pennsylvania businesses with multiple locations including offices out of state, which will benefit directly from improved out-of-state functionality because Verizon’s improved network will be able to serve them in a more unified and efficient manner. Within Verizon’s incumbent local exchange carrier (ILEC) territories in Pennsylvania, current XO customers for the first time will have access to a more comprehensive Verizon network and services that they did not have before, due to the enhancements that will be derived from the transaction.” Pennsylvania businesses still will have "numerous" competitive telecom options after the deal, he said. “XO’s exit as an independent competitor will not diminish competition. Verizon’s acquisition of XO will enhance competition by expanding the coverage and capacity of Verizon’s network, by achieving synergies and increased financial stability, and by increasing the breadth of products available to XO customers.” In a letter announcing the decision, the commission sought exceptions to the ruling by Nov. 28. If no objections arrive, the decision could become final without further commission action, or the agency may review and change the decision, it said. "Nothing is official until the Commission issues a final order, which takes place at a public meeting," a PUC spokesman emailed Thursday. "There’s no specific schedule for formal Commission action." The deal also still needs approval from the New York Public Service Commission, the FCC and the Justice Department. Verizon declined to comment Thursday.