Spectrum

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.

If the government approves Sprint and T-Mobile’s bid to merge, customers of lower cost pre-paid plans — say from Boost and MetroPCS — could face changes. Both Sprint and T-Mobile also sell prepaid services at lower costs and under different brand names: Sprint has Boost and Virgin Mobile USA, while T-Mobile offers MetroPCS. The two also wholesale their networks to such third-party resellers as Consumer Cellular, Republic Wireless and Ting; AT&T and in particular, Verizon, are less open to the resellers.

A coalition of 11 carriers and corporations, eight industry associations and the nation’s largest port authority have sent the Federal Communications Commission an auction proposal for the Citizens Broadband Radio Service (CBRS) spectrum band that represents a middle ground between rules currently in place and a proposal submitted recently by organizations representing mobile carriers. CBRS auction plans have pitted the mobile carriers, who want larger license areas to support mobile 5G services, against those who want to use the spectrum for fixed wireless broadband and who argue

[Commentary] The proposition here is simple: This T-Mobile/Sprint deal will shrink the market for nationwide mobile wireless service from four players to three, giving consumers fewer choices and increasing the likelihood that prices will be higher and service offerings will be less consumer-friendly. Decreased competition in a market that is already consolidated? This deal should be an easy one for the government to reject. Companies seeking to merge typically promise the sun, moon, and the stars to regulators in order to obtain approval, and T-Mobile and Sprint are no different.

The Federal Communications Commission adopted a Notice of Proposed Rulemaking to consider updating the framework for licensing Educational Broadband Service (EBS) spectrum in the 2.5 GHz band. The NPRM proposes to modernize and rationalize the EBS spectrum in the 2.5 GHz band to allow more flexible use. The item proposes to rationalize the service areas of existing EBS licenses and to provide additional flexibility to current and future EBS licensees.

The Utilities Technology Council, a trade group representing hundreds of US utility companies, is urging federal agencies to make sure that power and electricity providers retain control of interference-free spectrum so they can continue to operate their own private wireless networks. Utilities Technology Council noted that part of the reason utilities need their own licensed spectrum is because “utilities have built out and maintained their own ICT networks, rather than outsourcing service from commercial telecommunications carriers.

[Commentary] Is our government bound by the rule of law or the rule of President Trump? The Department of Justice's Antitrust Division must consider this question. Here's why. There is a two-part, simple legal standard for deciding whether the proposed combination of Sprint and T-Mobile should be allowed. Would it harm competition in such a way that consumers would suffer?

T-Mobile appears to be rallying former regulators and legislators to its side, while some congressional Democrats and some public interest groups are formulating their arguments against the deal. Sitting in the middle are the Federal Communications Commission and Department of Justice, which must sign off on the transaction. It’s unclear how those agencies might act on the deal: Although most observers see the Trump administration as favorable to big businesses, the DoJ filed a lawsuit against AT&T’s attempts to purchase Time Warner.

On April 29, 2018, T-Mobile US and Sprint announced that the boards of the two companies had agreed to enter into an agreement to merge. The companies said they hope to close the deal in the first half of 2019. The most obvious argument in favor the deal?

If you're a Sprint customer and have been frustrated by network performance, you may want to cheer on the deal with T-Mobile. If you're a T-Mobile customer, it doesn't represent much of an upgrade. For both groups, this tie-up—which still has to be approved by regulators—carries the risk of higher prices and fewer deals. For simple speed, though, the merger offers a lot of potential upside for Sprint users. Consider the results found by four nationwide tests of the big four carriers—two relying on crowdsourced data, two based on scheduled drive testing.