- T-Mobile is still awaiting FCC approval of its buyout of UScellular assets
- Opponents say UScellular’s spectrum deals with Verizon and AT&T should be considered at the same time
- Collectively, the transactions likely would violate antitrust laws, opponents say
Consumer advocacy groups and rural wireless operators continue to voice their concerns about the tie-up between T-Mobile and UScellular.
But last week, they added a new twist to their requests: They want the FCC to view UScellular’s separate spectrum deals as one big single transaction.
T-Mobile struck a deal to acquire UScellular’s wireless assets and 4 million customers last May, including its 600 MHz, 700 MHz, 2.5 GHz, AWS and PCS spectrum. A few months later, AT&T and Verizon agreed to buy some of UScellular’s spectrum for about $1 billion each. AT&T is going after its 3.45 GHz and 700 MHz spectrum, while Verizon’s transaction involves 850 MHz, AWS and PCS licenses.
The Rural Wireless Association (RWA), Communications Workers of America (CWA), Public Knowledge, New America’s Open Technology Institute and the Benton Institute for Broadband & Society want regulators to zoom out from the T-Mobile deal and view the broader impact of these deals as if they were one.
“Viewed collectively, the three transactions effectuate a scheme that would likely violate the antitrust laws were it subject to them," the groups wrote in a May 12 filing to the FCC.
"In short, three dominant competitors agreed to divide the spoils of a fourth competitor, with no involvement or opportunity for smaller competitors to have a chance at the spectrum or other assets."
The groups previously argued that the FCC should slow down and consider what the deal means for competition in wireless services overall, how it could lead to price increases and how it will add to T-Mobile’s already dominant concentration of spectrum.
Competition since T-Mobile/Sprint merger
Their opposition comes as telecom and cable rivals submit heavily redacted information about the state of their own businesses to the FCC. The commission requested the information as part of its review of the T-Mobile/UScellular tie up.
In its filing, Comcast noted that the proposed transaction is part of an overall trend of increased consolidation in the wireless industry by the Big 3 nationwide wireless providers. While the U.S. government set up Dish Network as a fourth nationwide facilities-based mobile provider via the T-Mobile/Sprint merger, it’s instead cable MVNOs like Comcast “that have emerged as a strong competitive force in the wireless marketplace since the T-Mobile/Sprint merger.”
Indeed, Dish's attempts to reboot and rebuild Boost Mobile to become a stronger wireless player haven't exactly gone to plan. And while Boost is finally starting to get some recognition in third-party network benchmark tests, its parent company EchoStar is now facing questions from the FCC about whether it is using its spectrum assets as it should. Essentially, the would-be fourth wireless titan is nowhere near fulfilling that role.
Meanwhile, the FCC last week approved Verizon’s acquisition of Frontier after Verizon agreed to end diversity, equity and inclusion (DEI)-related policies and to make changes in its tower business. That followed the FCC’s approval of T-Mobile’s Lumos acquisition after it too agreed to change DEI policies.