Yesterday we reported how the FCC was getting close to rubber-stamping the Embarq and Centurytel merger, imposing conditions that were little more than window dressing. Today finds the new company (CenturyLink) announcing that the FCC has indeed approved the merger. Calling the FCC's approval a "significant and exciting milestone" in a "rigorous review process," CenturyLink insists the new carrier is "committed to investing in our communities and providing our customers high-quality, reliable communications and expanded broadband services."

The problem is, despite a supposed dedication to broadband expansion, the FCC's conditions have CenturyLink doing absolutely nothing they wouldn't have done already (and perhaps less), requiring they go from 87% to 90% DSL penetration in their phone network footprint within three years. The undermanned FCC apparently wanted to rush the approval on CenturyTel's behest, before new FCC boss Julius Genachowski was appointed as the new agency head. The FCC didn't respond to our request as to why the deal was being rushed.

As with AT&T, the FCC allows the carrier to consider resold satellite broadband to mean they've achieved "100% broadband coverage," ultra-low standards under any metric. In a statement, interim FCC head Michael Copps seems oddly aware at the agency's own failings, despite signing off on the merger. Copps actually takes time to suggest that those disappointed in this merger shouldn't take it as an example of the agency's future behavior when it comes to a national broadband plan, or even future mergers:The FCC of course has a history of rushing through merger approvals at lobbyists' behest, applying meaningless conditions they then fail to enforce. While Copps insists this approval shouldn't be regarded as indicative of future policy, it's not particularly clear why. The FCC has shown repeatedly that the agency's primary function is to serve the will of telecom lobbyists, with consumer welfare generally treated as an afterthought.

While the deal probably should have been approved, why so quickly? And why such toothless conditions?

CenturyTel deal broker and lead lawyer Sam Feder was, until recently, the FCC's General Counsel, continuing the agency's proud tradition of a revolving door between lobbyists/lawyers and technology regulators. One would think the FCC might have been more hesitant if the technology media actually paid attention to the process this week, casting a critical eye on the merger's expedited approval. Instead, the vast majority of the technical media spent yesterday discussing the iPhone app store's first soft porn application.

See: FCC press release and statements from Commisioners Copps, Adelstein and McDowell -- all in pdf format.

When the FCC allowed AT&T to acquire BellSouth in one of the largest telecom deals ever, the agency enacted a series of wimpy conditions (pdf). Not only were most of the conditions simply for show, but the FCC made it very clear they really had no intention of enforcing them. AT&T was supposed to offer naked or 768kbps $10 DSL for two years after the merger, but skirted around the condition's purpose by never advertising the services, and making it difficult to order them until people really started complaining. The FCC napped.

AT&T denied obfuscation and tried to claim that nobody really wanted dirt cheap unbundled DSL service anyway. Worse perhaps than the weak and unenforced conditions were the meaningless conditions the FCC knowingly signed off on.

After getting the last of all State regulator approval earlier this week, Embarq and Centurytel have unveiled the new name and logo for the freshly fused company, According to a company press release, the two companies will now be known as CenturyLink. Once the company receives approval from the FCC (a given), the freshly fused company will have 7.5 million access lines, more than two million broadband customers and more than 400,000 video subscribers across thirty three states. The $11.6 billion deal is at the heart of an interesting new rush toward rural telephone company consolidation.

Last October, the seventh largest ILEC (Centurytel) acquired the fourth largest (Embarq) in a deal estimated to be worth $11.6 billion. Telecompetitor directs our attention to a CenturyTel press release that notes California, Oregon, and Virginia have approved the deal. That leaves just two of the thirty three States the company does business in who've yet to approve the deal. The freshly fused company would have 7.5 million access lines, more than two million broadband customers and more than 400,000 video subscribers.

DSL provider CenturyTel (see our user reviews), who last year acquired Sprint spinoff Embarq in an $5.8 billion dollar deal, says they'll be using LTE technology instead of DSL to deliver broadband service to some rural customers. The first deployments will occur sometime next year in limited areas, according to CenturyTel CEO Glen Post. "It would be 2010 before there would be any significant dollars" spent on an LTE rollout," says Post. "And even then we'll roll out a few markets and then we'll enter (other markets) on a selective basis as we prove success of the technology roll-out." CenturyTel owns enough spectrum to cover about 53% of their service area.