The FCC's Enhanced Transaction Review Standard

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Over a year ago, AT&T filed an application seeking to acquire two Lower 700 MHz B Block licenses from Club 42 CM Limited Partnership. AT&T’s ownership of 700 MHz B Block licenses is wholly uncontroversial -- we purchased many in the 700 MHz auction and have been enhancing our B block footprint through small deals for some time. As with the other B block deals before it, there is no real argument against the merits of this acquisition. The transaction involves bare spectrum that will provide AT&T with a sufficient position to support a 10 x 10 MHz LTE deployment in 700 MHz in the relevant markets. A contiguous 10 x 10 MHz configuration is more spectrally efficient and has a greater throughput than a 5 x 5 MHz deployment. The more robust LTE network made possible by this transaction will improve spectral efficiency, increase network capacity and enable us to offer faster, higher quality services to our customers.

For these reasons, the Federal Communications Commission has repeatedly found that transactions that enable 10 x 10 MHz LTE deployments serve the public interest and has approved them. Yet, and without offering any cogent argument or justification, Competitive Carriers Association and T-Mobile have opposed the deal, arguing that the FCC should simply prohibit any incremental low-band spectrum aggregation by AT&T and Verizon. Period. They essentially assert that low band spectrum transactions should be deemed presumptively unlawful for any company named AT&T or Verizon.


The FCC's Enhanced Transaction Review Standard