Deutsche Telekom’s American subsidiary T-Mobile USA has reiterated its support of Verizon Wireless’ US$3.9bn spectrum deal with cablecos, filings with the Federal Communications Commission (FCC) reveal. The FCC is currently reviewing Verizon’s…
Deutsche Telekom’s American subsidiary T-Mobile USA has reiterated its support of Verizon Wireless’ US$3.9bn spectrum deal with cablecos, filings with the Federal Communications Commission (FCC) reveal.
The FCC is currently reviewing Verizon’s acquisition of advanced wireless services (AWS) spectrum from JV SpectrumCo – comprised of Comcast, Time Warner Cable and Bright House Networks – and Cox Communications.
Once a critic, T-Mobile came out in support of Verizon’s acquisition after the operators agreed a spectrum swap in June. Earlier this month it was reported that the FCC was ready to approve the deal.
The latest filings demonstrate how keen T-Mobile is for the deal to go through quickly so it can get hold of more licences.
T-Mobile was one of the staunchest critics of Verizon’s agreement and joined an industry pressure group, the Alliance for Broadband Competition, in May along with Sprint.
However, in late June, T-Mobile entered into an agreement with Verizon whereby the operators would swap AWS spectrum in 218 US markets, with T-Mobile purchasing additional licences from Verizon.
The proposed deal included licences that Verizon plans to acquire in its US$3.9bn deal with cablecos, and from a deal with Leap, making the spectrum swap with T-Mobile contingent on the closing of those transactions.
Subsequently T-Mobile changed its tune and came out in support of Verizon’s giant deal with the cablecos.
The latest FCC filings reiterate that support and take aim at the Rural Telecommunications Group (RTG) that has been critical of the deal.
The RTG filed a petition with the FCC on 10 July against Verizon and T-Mobile.
“Verizon Wireless would like the general public to believe that by entering into an 11th hour deal with T-Mobile it is engaging in a magnanimous self-divestiture that will somehow mitigate the public interest harms created by its previously-announced deals with the Cable Companies and Leap,” said an RTG spokesperson.
“No matter how many times Verizon Wireless shifts the cards on the table, the results will be the same: more spectrum for Verizon and fewer choices for the consumer,” the spokesperson claimed.
T-Mobile’s response details a meeting at the commission, with attendees including its interim CEO Jim Alling and FCC chair Julius Genachowski. Alling and other T-Mobile representatives urged the FCC to approve Verizon’s deal quickly so T-Mobile could start deploying LTE.
The FCC had stopped the clock on its review into Verizon’s US$3.9bn purchase following the spectrum swap. It restarted its review on 10 July, which was day 138 of the 180-day investigation.
In another more detailed filing T-Mobile’s counsel, Jean Kiddoo of Bingham McCutcheon, specifically addresses concerns of opponents of the spectrum swap deal.
The filing describes the deal as “pro-competitive” as it will allow both operators to use their spectrum more efficiently and will allow T-Mobile to better compete as they will be able to offer a better service.
It says the swap “serves the public interest” as T-Mobile will be stronger as a result, and this will force “pro-consumer responses from other firms in the marketplace”.
The swap deal will equate to a divestment for Verizon as it will reduce its spectrum holdings in 125 cellular market areas (CMAs), while it only gains in 17 CMAs, according to T-Mobile. In 76 other CMAs the swaps will be like for like to create more contiguous blocks for both operators.
