T-Mobile and UScellular Answer Critics of Deal in FCC Filing
T-Mobile and UScellular countered opposition filed against their deal that has T-Mobile acquiring “substantially all” of the smaller provider’s wireless operations, including about 30% of its licensed spectrum. Numerous commercially sensitive details were redacted from the filing posted Friday in docket 24-286. In December, the Rural Wireless Association, EchoStar and Communications Workers of America asked the FCC to reject the deal (see 2412100044), which was announced in May. In the filing, T-Mobile and UScellular pointed to the transaction's economic benefits, laid out (see 2409160029) in a September public interest statement (PIS). “Unsurprisingly, the petitioners and commenters questioning the consumer benefits described in the PIS fail to provide any credible evidence or technical analysis to support their allegations,” the filing said. “Instead, these parties baselessly assert that the Transaction will harm competition among mobile wireless providers and result in higher prices for consumers.”
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The filing argues that T-Mobile and UScellular face limitations that the combination would address: T-Mobile has “a deep network with respect to capacity and the availability of advanced services -- especially 5G services -- in specific portions of the UScellular footprint, but … lacks broad coverage, particularly in rural areas," while UScellular has “expansive coverage in its operating regions but lacks depth in many portions, particularly with respect to 5G services.” The two said they have made a detailed showing “quantifying the improvements in network performance that will result from the Transaction -- including substantial improvements compared to the standalone networks.” The filing addresses many criticisms aimed at the proposed transaction. It notes, as one example, that RWA asserts that some customers could be left without service or with diminished service during the network integration period. “RWA’s argument ignores T-Mobile’s history of successfully undertaking far more complex network integrations in a timely and consumer-friendly manner and that it has a strong business incentive to do so again here,” the filing said.
Meanwhile, AT&T urged the FCC to consider separately from the larger deal its proposed buy of 3.45 GHz spectrum and 700 MHz B/C-block licenses for $1.018 billion from UScellular (see 2411070026). The T-Mobile transaction “raises fundamentally different competitive issues than the AT&T Transaction,” the carrier said in a filing Friday: The sale to AT&T is “a straightforward, spectrum-only transaction that should be reviewed on its own merits.”