Copps Accuses FCC of ‘Rush to Judgment’ in Aloha Decision
FCC Commissioners Michael Copps and Jonathan Adelstein accused the FCC of acting in haste, without doing the required competitive analysis, in approving AT&T’s acquisition of 700 MHz spectrum from Aloha Partners. Commissioners voted 4-1 to approve the acquisition Jan. 25 (CD Jan 28 p1), but the order was not released until late Monday. Copps dissented, while Adelstein issued a concurrence. The FCC’s three Republican members didn’t issue statements.
Sign up for a free preview to unlock the rest of this article
Communications Daily is required reading for senior executives at top telecom corporations, law firms, lobbying organizations, associations and government agencies (including the FCC). Join them today!
“Most unfortunately, today’s order contains only an extremely abbreviated analysis of the competitive effects of this change in ownership,” Copps said. “Instead, we have a rush to judgment that seems hard to square with the FCC’s statutory duty to promote competition in the wireless marketplace and diverse ownership of spectrum licenses.”
Copps questioned the use of the FCC’s “faulty new 95 MHz spectrum screen,” established in the AT&T-Dobson merger order, which he said “is based on sloppy math and inaccurate assumptions.” He noted that the order concedes AT&T will be over this “far-too-generous” soft cap in 11 markets. Copps also said the FCC’s analysis was thin. “Our license transfer orders also traditionally analyze the public interest benefits of a transaction -- but not this one, which is largely silent on the issue,” he said. “Today’s hasty decision seems destined to reduce competition and diversity in the wireless marketplace.”
Adelstein said he was pleased the full commission was allowed to vote on the order. Initially, Wireless Bureau Chief Fred Campbell had told legal advisors he planned to issue the order as a bureau notice without a commission vote. “This is a significant merger, and I think it was proper that a decision of this scope was reviewed by the full Commission,” Adelstein said. “The transfer of control to AT&T Mobility of Aloha’s assets and authorizations for 12 MHz of 700 MHz spectrum is a transaction that affects 196 million people in 281 markets, including 72 of the top 100, and all of the top ten markets in the United States. A merger of this size requires a thorough public interest review. It raises questions for policymakers and consumers because communications services -- voice, data, and video -- are so integral to our daily lives and to the economic success of our communities and our national economy.”
Adelstein said he voted to approve the merger because no one filed an opposition. But he also said the FCC should have done more analysis. “I only concur because the Order lacks both substance and analysis in its review of whether, on balance, the transaction serves the public’s interest. We are required to do more than simply conclude that a transaction benefits the public and will not have an adverse effect on competition,” he said. “I would have preferred to see a more thorough assessment weighing the potential public interest harms and benefits of this transaction and its impact on the mobile telephony market.”