Beyond Net Neutrality: FCC's Telecom-Deal Doings

The Federal Communications Commission voted to effectively raise the amount of wireless spectrum a carrier can own in a given market. This could mean AT&T and Verizon Communications have an easier path to acquisitions, even as it throws up a possible hurdle for Sprint in its desire to do a deal with T-Mobile US. At issue are so-called spectrum screens. These aren't hard-and-fast ceilings on the amount of wireless spectrum a company can own. Rather, bumping up against the screen prompts additional regulatory scrutiny of deals. For AT&T and Verizon, the FCC's vote might help tilt the scales in favor of a bid for one of the biggest spectrum prizes out there: Dish Network. It has been buying up airwaves with the goal of transitioning into a new business as growth in satellite TV stagnates. As a result, spectrum accounts for a huge portion of Dish's $27.6 billion market value, making it an attractive target. In another blow to Sprint and T-Mobile, the FCC voted to set aside fewer airwaves than some had expected for smaller carriers in a coming auction of broadcast spectrum. The agency said that even those allotments could be reconsidered if a major wireless deal is proposed—a provision largely seen as yet another warning to Sprint and T-Mobile.