CWA Says T-Mobile, Sprint Abused New York PSC Process
The Communications Workers of America claimed foul play Monday on T-Mobile and Sprint's comments on their deal made last week at the New York Public Service Commission in docket 18-C-0396. The carriers urged the PSC to clear their deal, citing big benefits to the state. CWA and a state consumer advocate said the companies' initial New York application was deficient. Reviews continue in California and elsewhere.
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!
“T-Mobile and Sprint have abused the New York PSC process for public comment, and CWA will not sit still for it,” CWA Telecom Policy Director Debbie Goldman told us. The PSC asked for public comment, not from the applicants, she said. The carriers submitted an incomplete application to the agency, preventing CWA from filing the in-depth critique that the PSC needs, she said. The carriers and commission didn’t respond.
“There is no risk of competitive harm resulting from the wireline operations of Sprint Communications being acquired,” commented the applicants, also filing copies of their June 18 application and Sept. 17 joint opposition to petitions to deny at the FCC, plus an attachment listing New York benefits with numbers redacted. T-Mobile doesn't compete with Sprint wireline services in New York, the carriers said. New York review is limited to the indirect CLEC acquisition, but they said the PSC “should nevertheless also recognize the significant benefits the broader transaction will have,” including “creation of New York-based jobs required to deploy the 5G network and expansion of fiber-like services to an overwhelming number of residents.” The investment will “further intensify competition historically fostered by this Commission’s policies,” they said.
The carrier’s New York application was eight pages, with little evidence supporting claims and lacking “any assertion of public interest benefits other than those that may accrue nationally” from their 5G, CWA commented also in as many pages. The PSC should deny the application or establish an evidentiary proceeding and have hearings, the union said. The deal will kill more than 1,700 New York jobs and reduction in wireless competition will disproportionately affect the poor, CWA said.
The application fails to “address any of the public interest factors that the Commission has repeatedly instructed that it will analyze in telecommunications mergers,” agreed New York’s Public Utility Law Project. “Given the lack of any citations to evidence, testimonial or otherwise, that would tend to show that the transaction is affirmatively in the public interest, the Commission only has a few options if it chooses to strictly construe and act under PSL sections 99 and 100.” PULP said the agency can deny the petition, condition it or “hold an evidentiary proceeding in which it would collect the evidence necessary for it to make a public interest analysis.” Hearings would be best, PULP said.
"New T-Mobile's 5G network will offer unrivaled capacity and performance that will directly benefit MVNOs and their New York subscriber base,” commented Prepaid Wireless Group. “The combined company will also place competitive pressure on AT&T and Verizon, leading to a cycle of increasing capacity and lower prices for MVNOs like PWG.” The Greater Rochester Chamber of Commerce said the deal would create jobs, increase internet access, and boost the economy, health, education and public safety. Proposed investment in resilient infrastructure in Puerto Rico will mean Puerto Ricans in New York can contact family if another hurricane like Maria strikes, said the National Puerto Rican Chamber of Commerce.
The New York PSC should deny the merger, urged consumer groups including Common Cause and Public Knowledge. That coalition and Dish separately filed copies of their FCC petitions to deny.
Worker and consumer advocates are preparing for a West Coast fight at the California Public Utilities Commission, doing detailed review of T-Mobile/Sprint (see 1810050004). That state agency scheduled a Dec. 10 workshop/webcast at 1 p.m. PST. Written testimony is due Jan. 7 and the CPUC promised multiple public hearings, said The Utility Reform Network Managing Director-San Diego Christine Mailloux.
The carriers got approval in the District of Columbia last month, after OKs including from Maryland, Alaska and Colorado. The Pennsylvania Public Utility Commission is studying the deal (see 1810100018) but doesn’t regulate retail commercial wireless service, a spokesperson said.