Thursday, August 15, 2019

Pai Calls for Approving T-Mo-Sprint Deal; Critics Want More Public Input

The FCC is on the path to formally approving the merger of T-Mobile and Sprint. Chairman Ajit Pai had said he was inclined to okay the deal, and Wednesday he shared a draft order with his colleagues to approve it, subject to conditions. He asked them to vote in favor of the transaction as well.

Pai called the FCC’s review of the proposed $26B transaction “one of the most exhaustive merger reviews in Commission history.” The evidence, he said, shows the deal will bring 5G wireless service faster to more Americans, including rural areas. The draft order contains enforceable conditions, requiring coverage of at least 99 percent of Americans within six years.

Many critics have said the deal means less competition among wireless carriers, which will drive up consumer prices. In fact, Commissioner Jessica Rosenworcel said after receiving the draft order approving, “the largest wireless merger in history,” she believes “we need more competition, not less. I am not convinced that removing a competitor will lead to a better outcome for consumers.” She called on the agency to open up the transaction to more public comment before the Commission votes on the transaction, noting: “too much here has been done behind closed doors.” Continue Reading

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