Ownership

Regulating big tech is quickly becoming a central theme of the 2020 presidential race. But many of the tech-industry insiders I spoke with, including some who agree with Sen Elizabeth Warren (D-MA) that the big companies are too powerful, cautioned that some of the details in her proposal were too vague, and could backfire if put into effect as written. Warren’s plan is a bold first stab at reform, and some of her proposals make a lot of sense. But I’d offer a few edits.

T-Mobile CEO John Legere told the House Judiciary Committee that his network does not now include technology from Chinese Telecom Huawei, that a new T-Mobile-Sprint 5G network would not contain such tech, and that he would even help others try to clear their networks of the technology. That was just one of many pledges he was making to help sell lawmakers on his plan to buy Sprint.

House Antitrust Subcommittee Chairman David Cicilline(D-RI) said he's concerned with a broad range of implications tied to the multi-billion-dollar merger deal between T-Mobile and Sprint. "I'm particularly concerned about the impact on consumers, on the price of services, on choice," he said. Also at the hearing, T-Mobile CEO John Legere commented on Huawei.

“This is for the first time 100-plus premium channels—not the junk nobody wants—purely over the top, a mobile-centric platform, for $35 a month.” And soon, it might be the last time. This was AT&T CEO Randall Stephenson describing the promise of DirecTV Now just 27 months ago, as the company launched what would become one of the video business’ fastest growing subscription over-the-top products.

On February 12, 2019, 9 senators wrote to Federal Communications Commission Chairman Ajit Pai urging the FCC to reject the proposed merger between T-Mobile and Sprint. The senators said the deal is likely to raise prices for consumers, harm workers, stifle competition, exacerbate the digital divide, and undermine innovation. "Furthermore, we remain unconvinced that the merger would speed up the deployment of next-generation 5G networks or extend affordable coverage to all Americans," they wrote.

I have a bad case of news blues. Journalism is fast becoming a vast wasteland. Newsrooms across the land are hollowed out, or in many cases shuttered.

March 8, the Presidential campaign of Elizabeth Warren, not to be confused with the actual office of Sen Elizabeth Warren (D-MA), announced Warren’s plan for addressing the tech giants. What makes Warren’s contribution a potential game changer is that she goes well beyond the standard “break ’em up” rhetoric that has dominated most of the conversation to date, and focuses on sustainable sector specific regulation. What makes it so important and smart structurally is that the proposal: 

When leaders in Silicon Valley assess the new antitrust fever among candidates and policymakers, the prospect of corporate breakups isn't their biggest worry. Instead, insiders fear missing the next cycle of industry change if they're distracted and hobbled by antitrust conflicts. If executives are busy answering lawmaker inquiries and defending regulator lawsuits, they're less likely to be protecting their businesses from upstart challengers.

In its continued effort to gain approval for its merger with Sprint, T-Mobile has pledged to keep supporting Sprint's low-income Assurance Wireless brand "indefinitely." Assurance along with Sprint's other prepaid brands, Boost Mobile and Virgin Wireless, and T-Mobile's Metro are popular with lower-income and cost-conscious Americans for their cheaper alternatives to traditional plans than the main four wireless networks.  "The digital divide is real and we want to help eliminate it," T-Mobile president Mike Sievert said.