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CPUC Launches Broad Sprint/T-Mobile Review; FCC Asks Altice, C-Spire About Merger Impact

California launched review of Sprint buying T-Mobile, while the FCC gathered more information. California Public Utilities Commissioner Cliff Rechtschaffen released a scoping memo Thursday for the state’s review. “The fundamental issue presented by these applications is whether the proposed merger…

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of two of the four largest national wireless service providers is in the public interest of the residents of California,” and the agency will decide if conditions are needed, he said. The CPUC plans public hearings in Q4 and an evidentiary hearing Feb. 6-9. Opening briefs are due March 1, with replies March 15, and the agency plans to release a proposed decision in Q2, Rechtschaffen said. Consumer advocates had awaited the scoping memo after filing protests urging a detailed review (see 1809200038). The memo "raises many important issues that we believe the Commission must consider to determine if this very important merger is in the public interest of millions of California customers," emailed The Utility Reform Network Managing Director-San Diego Christine Mailloux. Public participation hearings will allow citizens to "directly voice their opinions," she added. The FCC asked Altice and C-Spire for information and documents so the agency can complete its review of T-Mobile buying Sprint, said documents posted Thursday in docket 18-197. Wireless Bureau Chief Donald Stockdale asked Altice to respond by Oct. 17 and sought C-Spire data by Oct. 18. The Altice request included questions about the cable company’s mobile business and any plans to develop a facilities-based network or acquire spectrum, plus how the deal might affect Altice’s wireless, TV or internet businesses. In the C-Spire request, the FCC asked what the deal might mean on the company’s wireless business and what spectrum issues that carrier may be facing. Major carriers got FCC queries earlier in the week (see 1810040021). Wednesday, Sprint submitted to the FCC a hard drive with additional information it gave to DOJ for the department's review. T-Mobile made phone calls Tuesday to FCC Chief of Staff Matthew Berry and T-Mobile/Sprint Transaction Team Director David Lawrence, said an ex parte posted Friday. The buyer said it didn't object to extending reply comments, consistent with precedent. The FCC questioning cable about wireless services “offers evidence that the FCC is at least somewhat considering the fact that the New TMUS will directly compete with home broadband and that the wireless business should be looked at through a wider lens,” said Wells Fargo analysts in a Friday note. “Based on these actions we believe the FCC is going to great lengths to get a sense of what the market will look like longer term. While we still expect spectrum divestures will have to be made, we see this development as a positive for the… transaction."