Video-active CenturyLink (NYSE: CTL) has been given FCC OK to acquire video-lacking Qwest Communications (NYSE: Q), paving the way for yet another telco-based competitor in the cable space.
The FCC's stamp of approval, given as long as the merged company is a broadband good citizen, marks the last stage of government interference before the $12.2 billion deal closes April 1. CenturyLink had to promise to offer low income households computers for $150 and broadband as low as $10 a month for the first year after the merger with the minimum price then going up to $15.
CenturyLink has also promised to double the number of homes and businesses that can get fast broadband of 12 Mbps or more in Qwest's service area and triple the number that can get 40 Mbps or more.
The telco has been rolling out IPTV service, most recently in Las Vegas where it has taken direct aim at incumbent cable provider Cox Communications.
For more:
- BusinessWeek has this story
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