WASHINGTON -- The Federal Communications Commission is expected to propose Tuesday a sweeping set of rules that details how and when foreign companies will be allowed to enter U.S. communications markets.
The initiative, launched in response to a petition from AT&T; Corp., will cover both foreign companies that want to set up U.S. affiliates and those that want to make investments in U.S. companies. While AT&T;'s request included only telephone companies, the plan might encompass the broadcast business as well, industry officials said.
The proposal will take several months to get final approval and is likely to have a significant impact on the U.S. communications industry, which has grown increasingly global during the last year. The country's largest phone companies have all announced partnerships with foreign companies, and many foreign groups are clamoring to get into the lucrative U.S. communications markets.
"It's time for there to be a clear set of rules," said AT&T; spokesman Jim McGann.
The FCC is expected to release the proposal Tuesday morning at a commission meeting. Agency officials confirmed they will release a new proposal on the issue, but declined to discuss details.
The proposal comes just as the FCC is considering a request by Sprint Corp. to sell 20 percent of the company to Deutsche Telekom and France Telecom for $4.2 billion. If the agency doesn't approve the transaction before the rules are finally adopted -- which won't happen until spring at the earliest -- the Sprint alliance is likely to be subject to the conditions of the rulemaking, industry officials said.