Mobile operator Sprint Nextel has formally requested that the FCC blocks AT&T’s acquisition of T-Mobile USA. In a filing to the telecoms regulator, Sprint said the deal would: harm the “broadband economy”; harm innovation and investment in the economy;…
Mobile operator Sprint Nextel has formally requested that the FCC blocks AT&T’s acquisition of T-Mobile USA. In a filing to the telecoms regulator, Sprint said the deal would: harm the “broadband economy”; harm innovation and investment in the economy; and have “no public interest benefit”. It suggested that the deal would leave AT&T and Verizon Wireless as an effective duopoly, describing them as “Twin Bells”, a reference to the “Ma Bell” situation in the 1980s, where the old AT&T was broken up in order to improve competition.
Sprint said in its statement: “The transaction would harm consumers, competition and the American economy as the Twin Bells would not be deterred from increasing prices and reducing consumer choice in wireless devices, applications and services where they control approximately 80 per cent of the wireless industry revenue.” Its advisor for government affairs, Vonya McCann, said that the deal left the mobile industry at a crossroads. She said: “We can choose the open, competitive road best travelled, and protect American consumers, innovation and our economy, or we can choose the dead end that merely protects only AT&T and leads the rest of us back down the dirt road back to Ma Bell.” In response, AT&T said that many community and civic organisations had voiced their support for the deal, as well as some unions and congress members. It also said that it anticipated additional support from other voices that recognised the “tremendous benefits” that came from spreading broadband coverage to more than 97 per cent of the population, as well as improving call quality and network performance for customers.
AT&T’s senior VP for external and legislative affairs, James Cicconi, said: “Sprint is confusing the public interest with their interest. The two are not the same.” Earlier in May, US media reported that Sprint’s CEO, Dan Hesse, had said that the AT&T/T-Mobile deal would put Sprint in a position to be acquired and that it would not be able to compete.
WiMAX wholesaler Clearwire is to outsource the day-to-day management of its WiMax network to Swedish vendor Ericsson.
Ericsson will be responsible for network engineering, operations and maintenance.
Clearwire said it would retain control of its network assets and take full responsibility for its future strategic decisions. It would also remain the “primary point of contact” with customers, wholesale partners and equipment vendors.
Ericsson also manages the mobile networks of Sprint Nextel, which holds a 54 per cent stake in Clearwire.
AT&T has paid US$320m to buy the remaining shares it did not already own in two Cincinnati-based companies from telecoms services company Convergys Corp. Convergys said that the two stakes involved were a 34 per cent limited partnership interest in mobile operator Cincinnati SMSA and a 45 per cent limited partnership interest in Cincinnati SMSA Tower Holdings.
AT&T expects that the impact of the acquisitions on its cash flow and earnings will be “insignificant”. AT&T’s VP and general manager for the Ohio and Western Pennsylvania areas, Larry Evans, said: “Financially and operationally, it makes sense for AT&T to purchase Convergys’ minority stake in our Cincinnati wireless operations.” Device maker Motorola Mobility CEO Sanjay Jha has said that the company is open to making acquisitions without specifying which areas he would consider. Jha also said that his company was looking to roll out new devices in the high growth regions of China and Latin America. For Q4, he forecast a stronger presence in Europe, where the company is set to make a marketing push.
The Obama Administration has proposed new cybersecurity legislation to deal with the threat of cyber crime and intrusion. In a statement on May 12, the Administration said: “Our nation is at risk.
The cybersecurity vulnerabilities in our government and critical infrastructure are a risk to national security, public safety and economic prosperity.” The legislative proposal is divided into three sections, which broadly focus on protecting individuals, industry and government systems. Among the proposals, the government requires the Department for Homeland Security to identify core “critical-infrastructure operators” and prioritise the main threats facing them.
A third-party auditor would then assess the cybersecurity plans of these operators. Critical infrastructure includes the electricity grid, financial sector and transportation network, but telecoms were not mentioned. Another proposal includes simplifying the procedures for dealing with identity theft across the states of the union.
The legislation will be debated by Congress.
