Opponents of T-Mobile/UScellular Say Deal Would Harm Wireless Competition
EchoStar, the Rural Wireless Association (RWA), Communications Workers of America and other parties countered arguments that T-Mobile and UScellular made as the two battled opponents of their proposed deal (see 2501100036). The companies announced in May an agreement where T-Mobile will buy “substantially all” of the smaller carrier’s wireless operations, including some of its spectrum, in a deal valued at about $4.4 billion, including $2 billion in assumed debt (see 2405280047).
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EchoStar, parent of Dish Wireless, noted that new FCC Chairman Brendan Carr has repeatedly stressed the importance of spectrum for wireless competition. “This transaction is focused on withholding spectrum from competitors,” EchoStar said in a filing posted Wednesday in docket 24-286: “T-Mobile’s denials ... are contradicted by the documents T-Mobile produced in response to the FCC’s requests in this proceeding.”
In addition, EchoStar highlighted the implications of T-Mobile getting more 600 MHz spectrum as part of the transaction. It “adds to the glut of 600 MHz spectrum that T-Mobile has acquired (or has proposed to acquire) from Columbia Capital and the Horry Telephone Cooperative, as well as the billions [of dollars] worth of 600 MHz spectrum it has paid to acquire from Comcast in the near future,” the company said. “In many of the spectrum bands affected by this transaction and the others, EchoStar and other competitors have a single license on the outer edges that T-Mobile boxes out with its Magenta Wall.”
Contrary to T-Mobile and UScellular's claims, the latter remains a viable competitor and “does not need to exit the mobile wireless market to avoid the collapse of its business,” RWA said. The two companies “fail to explain T-Mobile’s long-term plans for the rates charged to UScellular customers and the extent to which certain UScellular customers may be adversely impacted by aspects of the proposed network transition, specifically the lack of handset compatibility.” They also fail to acknowledge that some USF-funded cellsites “may not be used to serve consumers once the transition is complete, resulting in a waste of USF support received by UScellular,” the group said.
CWA filed in combination with public interest and consumer groups, arguing that the transaction would harm wireless competition. It would “result in the loss of the fifth-largest marketplace competitor, make it nearly impossible for a fourth competitor to emerge in the market, and harm competition in labor markets,” they said. In petitions to deny, “Petitioners have raised sufficiently detailed concerns that the transaction as proposed will harm the public interest, and have demonstrated that Applicants have the burden of proof to demonstrate otherwise.” Others signing the filing were Public Knowledge, the Open Technology Institute at New America, the Benton Institute for Broadband & Society, Access Humboldt and the Institute for Local Self-Reliance.