Ownership

Federal Communications Commission Chairman Ajit Pai announced his support on May 20 for approval of T-Mobile’s $26.5-billion takeover of Sprint, following reported concessions made by the two carriers. Reactions:

Sen Amy Klobuchar (D-MN): "T-Mobile has long been a competitive disruptor in the market, bringing down prices and spurring innovation. I don’t think going from four to three major carriers will be good for competition in the long term.”

Apparently, the Justice Department is leaning against approving T-Mobile's proposed takeover of Sprint, even after the companies won the backing of Federal Communications Commission Chairman Ajit Pai. The remedies proposed by the wireless carriers on May 20 don’t go far enough to resolve the department’s concerns that the deal risks harming competition, apparently. While the FCC considers whether a merger is in the public interest, the Justice Department considers a different standard: whether a deal hurts competition and would raise prices for consumers.

I support the combination of T-Mobile and Sprint because Americans across the country will see more competition and an accelerated buildout of fast, 5G services. The proposed transaction will strengthen competition in the US wireless market and provide mobile and in-home broadband access to communities that demand better coverage and more choices. Today’s commitments to bring 5G to rural America are verifiable and enforceable. The proposed transaction’s investment in rural 5G will help close the digital divide—this FCC’s top priority.

Two of the Federal Communications Commission’s top priorities are closing the digital divide in rural America and advancing United States leadership in 5G, the next generation of wireless connectivity. The commitments made today by T-Mobile and Sprint would substantially advance each of these critical objectives.

As we’ve made our case for the New T-Mobile, we’ve been listening to the Federal Communications Commission and many others. We submitted a set of commitments to the FCC around the New T-Mobile to address what we’ve heard. Ultimately, the commitments are about our shared goal to put the US at the forefront of 5G innovation, driving massive economic growth, helping bridge the Digital Divide, creating more competition, and of course, giving consumers and businesses more for less.

A Q&A with Sen Ron Wyden (D-OR).

The law in question is Section 230 of the Communications Decency Act of 1996, written by Sen Wyden and former Rep Chris Cox (R-CA). It protects internet companies from being held liable for the content posted by their users and says they’re platforms, not publishers. It also gives them the space to police their sites and restrict and take down material as they see fit. 

Rep. Jan Schakowsky (D-IL), whose House Commerce Subcommittee is leading efforts to craft privacy legislation, raised the prospect of tackling concerns over competition and data protection at the same time. Asked about next steps on privacy legislation, Chairwoman Schakowsky said the question is where to limit the “scope” of a bill. “You can really get into a whole lot of things,” she said. “There’s talk about breaking up the big tech companies. Is that a part of this? Is that a separate [issue]?

As calls mount to break up big tech companies or limit their power, their legal fate will hang on how judges and regulators define their markets. "The social networking category" is a way to define this market that most readily casts Facebook as a monopoly. But if you call it "messaging," then Apple, Snapchat, and the cellphone providers all look like hearty competitors. Similarly, in many countries, Google looks to have a monopoly in the search market.

AT&T has cut more than 23,000 jobs since receiving a big tax cut at the end of 2017, despite lobbying heavily for the tax cut by claiming that it would create thousands of jobs. AT&T in Nov 2017 pushed for the corporate tax cut by promising to invest an additional $1 billion in 2018, with CEO Randall Stephenson saying that "every billion dollars AT&T invests is 7,000 hard-hat jobs. These are not entry-level jobs.

The Schools, Health & Libraries Broadband (SHLB) Coalition joined Mobile Beacon, the National Digital Inclusion Alliance (NDIA), the North American Catholic Educational Programming Foundation (NACEPF), Public Knowledge and Voqal in asking the Federal Communications Commission to request additional comment on and delay its proceeding to transform the Educational Broadband Service (EBS). The letter identified several topics on which the FCC must request additional comment due to insufficient information: