Public Knowledge Calls AT&T Takeover of T-Mobile Illegal

AT&T’s takeover of T-Mobile is illegal under the Communications Act, Public Knowledge will argue in a filing to the Federal Communications Commission (FCC).

The Communications Act (Sec. 314) bars the FCC from approving transactions that lessen competition or restrain commerce between the U.S. and foreign countries. In its reply comments to the FCC, PK said: “As the record shows, even under the most cramped and restrictive reading of the statute, Section 314 prohibits the transfer of facilities and assets between AT&T and Deutsche Telekom. The Commission has received numerous submissions from foreign carriers, foreign governments, and others that the combination of assets will “substantially lessen competition” in international roaming for GSM-based carriers.” Public Knowledge noted the law creates “an absolute bar” to approving the transaction: “Undoubtedly, a transaction that reduces the number of possible international roaming partners from 2 to 1 “has the effect” of substantially lessening competition, if not creating an unlawful monopoly, between those geographic regions and “any foreign country” in direct violation of the language of the statute.”

In its filing, PK will also argue AT&T has not been forthright with policymakers about its plans to accept further universal service fund (USF) support. In its formal papers filed with the FCC, AT&T said the FCC should not impose any USF-related conditions.” However, in testimony to the Senate Antitrust Subcommittee, AT&T Chairman Randall Stephenson said the company would accept a condition not to take USF funds for its promised advanced wireless build-out. AT&T in its filing characterized Stephenson’s statement at the hearing as a “voluntary commitment.”