SHL Systemhouse?s expected merger with Syntegra, BT?s system integration arm, has been delayed by a European Commission (EC) decision to extend by four months its investigation into BT?s $20 billion proposed acquisition of SHL parent MCI.
?There won?t be any great rows, but there are issues to be looked at,? said an EC representative.
AT&T last week sent a 31-page document to US investigator the Federal Communications Commission warning that BT/ MCI could discriminate in the charges it makes to other operators using BT?s local lines to deliver calls.
It is also looking at whether the merger would have any impact on the availability of transatlantic cable capacity for new entrants as BT and MCI control a significant amount of capacity. This could harm further growth of the internet since there is already a shortage of capacity.
Other issues include whether the merged company could divert US-Europe traffic through the UK in a way not available to its European competitors.
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