Drew FitzGerald
Telecom Companies Are Running Out of Time to Make Deals
A looming Federal Communications Commission deadline could spur telecom companies to hurry up deal talks before restrictions on their discussions tie their hands. The FCC said in a public notice that it would stop accepting applications on Sept. 18 for two planned wireless-airwave auctions in 2018. Rules bar applicants from talking with each other from that date until the second auction ends and its winners make their down payments.
Justice Department Investigates TV Station Owners Over Advertising Sales
Apparently, the Justice Department is investigating whether television station owners violated antitrust law in ways that inflated local television advertising prices. The probe has examined whether Sinclair Broadcast Group, Tribune Media Co, and other independent TV station owners coordinated efforts when their ad sales teams communicated with each other about their performance, potentially leading to higher rates for TV commercials. Companies like Sinclair and Tribune own dozens of local TV stations that carry programming from national broadcast networks like ABC, CBS, NBC and Fox.
How Wireless Carriers Get Permission to Share Your Whereabouts
Cellphone carriers usually ask for their customers’ blessing before listing their phone numbers, sharing their addresses or exposing them to promotional emails. But seeking permission to share one particularly sensitive piece of information—a cellphone’s current location—often falls to one of several dozen third-party companies like Securus Inc. and 3Cinteractive Corp. Carriers rely on those firms to vouch that they obtained users’ consent before handing over the data.
How Phone Companies Share Your Data
Carriers get requests for their customers’ whereabouts from all sorts of places. How they handle them depends on who is asking. 1) Each carrier has a dedicated legal team that evaluates the requests of law-enforcement officers. 2) Emergency calls are routed to public-safety answering points, which can obtain the caller’s location without affirmative consent. 3) Middlemen like LocationSmart and Zumigo can access information on cellphone users’ whereabouts in situations where the company seeking the information might not know which carrier to ask.
Sprint, T-Mobile Vow Merger Won’t Repeat Nextel Havoc
Sprint’s plan to merge with rival T-Mobile in a $26 billion deal has triggered memories of dead phones and spotty service for some longtime Sprint customers, but the companies say such pitfalls are in the past. The customers are recalling the havoc of Sprint’s 2005 merger with Nextel Communications, much of it driven by the companies’ differing technologies. It took nearly eight years and billions of dollars to wind down Nextel’s so-called iDEN system—known for its chirpy push-to-talk cellphones—before all customers were taking calls on Sprint’s network.
AT&T Chief Says Hiring Michael Cohen as Consultant a ‘Big Mistake’
Randall L. Stephenson, AT&T’s chief executive, said in a staffwide memo that the company had made a “big mistake” by hiring President Trump’s personal lawyer, Michael Cohen.
AT&T made consulting payments to Michael Cohen’s company in 2017
AT&T said it made payments to Essential Consultants LLC, a company created by Michael Cohen, President Donald Trump’s personal lawyer, in 2017 for “insights” into the Administration at a time when the telecommunications giant needed government approval for an $85 billion takeover of Time Warner Inc. Cohen used Essential Consultants LLC in October 2016 to make a $130,000 payment to former adult-film actress Stephanie Clifford, known professionally as Stormy Daniels, who had alleged she had a sexual encounter with Donald Trump in 2006. AT&T made four payments to Cohen’s firm totaling
Sprint, T-Mobile Agree to $26 Billion Merger
The boards of Sprint and T-Mobile US struck a $26 billion merger that, if allowed by antitrust enforcers, would leave the US wireless market dominated by three national players. Under the terms of the deal, T-Mobile will exchange 9.75 Sprint shares for each T-Mobile share. T-Mobile parent Deutsche Telekom will own 42% of the combined company and Sprint parent SoftBank Group will own 27%. The remaining 31% will be held by the public. Deutsche Telekom would also control voting rights over 69% of the new company and appoint nine of its 14 directors.
AT&T’s Tab Awaiting Time Warner Takeover Hits $1.4 Billion
Even if a federal judge sides with AT&T in its fight to take over Time Warner for $85 billion, victory won’t have come cheap. AT&T spent $1.1 billion in 2017 on debt interest and fees tied to the proposed merger, plus $214 million on related integration costs. The first quarter added another $67 million of integration costs. Time Warner said it spent $279 million on merger costs in 2017 and another $146 million through March.