British Telcom, Mci Ask Approval

Holding out the promise of lower telephone rates, British Telecom and MCI asked federal regulators Tuesday to approve their planned $20.8 billion merger. It would be the biggest-ever foreign takeover of a U.S. company.

The companies announced agreement Nov. 3 to create a combined company called Concert to provide communications services worldwide. They filed the proposal with the Federal Communications Commission on Tuesday, starting a process in which consumers and competitors will be given a chance to comment. The FCC could act by March or April.

The proposal also must be cleared by the Justice Department, more than 30 state regulatory commissions, British regulators and the European Union. MCI hopes to close the deal by the fall of 1997.

British Telecommunications is the largest telephone company in Britain. MCI Communications is the second-largest long-distance company in the United States after AT&T.