Wireless Telecommunications

The expert staff of the Commission and the Justice Department have agreed that the merger between TMobile and Sprint, as originally submitted, would likely harm competition and raise prices. Rather than denying that merger, however, the majority has turned to the parties for paper-thin commitments that they contend will expand broadband access and the deployment of 5G. But these promises cannot mask reality. You don’t need to be an expert to know that going from four wireless carriers to three will hurt competition. This merger takes a bad situation and makes it worse.

We’ve all seen what happens when markets become more concentrated after a merger like this one. In the airline industry, it brought us baggage fees and smaller seats. In the pharmaceutical industry, it led to a handful of drug companies raising the prices of lifesaving medications. There’s no reason to think this time will be different. Overwhelming evidence demonstrates that the T-Mobile-Sprint merger will reduce competition, raise prices, lower quality, and slow innovation.

On Oct 16, as a commissioner at the Federal Communications Commission, I voted to block the merger of T-Mobile and Sprint, the country’s third- and fourth-largest wireless carriers. But I am only one of five votes at the agency, and a majority of my colleagues have already voiced their support for this transaction. On top of that, the Department of Justice recently reached an agreement with the carriers, giving them a green light to combine. The largest wireless merger in history is now headed toward approval.

In a letter to the Federal Communications Commission, the state representatives on the Federal-State Joint Board on Universal Service expressed frustration with their FCC colleagues in coming to a consensus on how to reform Universal service Fund contributions. In 2014, the FCC referred the issue to the Joint Board which is chaired by FCC Commissioner Michael O'Reilly.

The decision by Mississippi's Attorney General to switch sides to support the proposed T-Mobile/Sprint merger immediately triggered questions about whether other states would follow suit. But MS is unique in its decision—and there’s little reason to suggest a slew of other states will follow in its footsteps.

About a dozen small rural carriers have purchased gear over the years from Huawei or ZTE, Chinese companies that have raised security concerns, according to their trade group, the Rural Wireless Association. The carriers often bought the equipment with US government subsidies intended to help bring Internet service to sparsely populated areas that larger telecom companies deemed unprofitable. Replacing the gear would cost roughly $1 billion, the association says, and Pine Telephone Company in Oklahoma and other small companies are calling for federal funding to help.

Opponents of the T-Mobile-Sprint merger are piling on the deal in the hopes of convincing a judge the Justice Department’s settlement isn’t good enough. The DOJ’s agreement with the wireless companies has to receive final sign-off from Judge Timothy Kelly of the DC District Court, and critics want to make it a tough decision. Historically, the federal court review of a merger settlement has been an uneventful affair.

AT&T and other mobile carriers are trying to hide detailed 5G maps from the public despite constantly touting the supposed pace and breadth of their 5G rollouts. With the Federal Communications Commission planning to require carriers to submit more accurate data about broadband deployment, AT&T and the mobile industry's top lobby group are urging the FCC to exclude 5G from the upgraded data collection. "There is broad agreement that it is not yet time to require reporting on 5G coverage," AT&T told the FCC in a filing.

In a new filing, a group of seven economists and antitrust experts say a court should reject the Department of Justice’s proposed solution for the T-Mobile/Sprint transaction, calling it “doom[ed] ... to failure” and “a remedy that does not meet the standard of restoring the competition currently provided by Sprint.” For at least the next seven years, anyone buying service from Dish will just be getting rebranded T-Mobile service, and that’s not actual competition.

Attorney General Jim Hood (D-MS) reached an agreement with T-Mobile as an alternative to litigation against the phone company’s merger with Sprint. The following commitments were made: