FCC Vote on T-Mobile/Sprint Expected at July Meeting
Chairman Ajit Pai will likely seek a vote at the July 10 FCC meeting on an order approving T-Mobile’s buy of Sprint, industry and agency officials said. Pai likely will first ask commissioners to vote electronically and then put the order on the agenda if he needs to force a vote, officials said. Other agency officials said they have heard nothing definitive on timing. Pai said Thursday (see 1906060056) he will circulate an order on the deal “in the coming weeks.” Friday, the agency declined comment.
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A July meeting vote would be “consistent with the timing of the California [Public Utilities Commission] decision making,” said New Street’s Blair Levin. With the action shifting to DOJ, the FCC’s order is less relevant, Levin told us: “It is also apparent that the competitive analysis of the Pai draft will be at odds with the DOJ staff analysis.”
Pai won’t be in a hurry to act since Justice may not OK the transaction, an ex-FCC spectrum official said. The department is purportedly seeking other concessions, including requiring the new company to sell off enough assets to start an additional, fourth national carrier (see 1905300058). FCC Democrats Jessica Rosenworcel and Geoffrey Starks are seen as likely no votes. The FCC's three Republicans signaled their general support for approval with the conditions worked out with the commission.
The Communications Workers of America, which opposed the deal, had no comment on the timing. “It is completely unprecedented for the FCC to act before the Department of Justice on a major transaction,” said CWA Telecom Policy Director Debbie Goldman. Other opponents said Friday they have heard nothing on when the FCC may act.
“The chairman has been clear about where he stands, so it's likely that the commission is ready to act,” said Joe Kane, tech policy fellow at the R Street Institute. “At this point, the limiting factor could be the DOJ. If the parties decide to alter the deal to assuage DOJ's concerns, that might invite the FCC to review those changes, too.”
“July would be fast, but the FCC is done” and there’s “nothing to wait for,” said analyst Roger Entner of Recon Analytics. “It could get very interesting if the DOJ denies the merger. Does the FCC want to be on the record opposing the DOJ?”
Altice met with Commissioners Mike O’Rielly, Brendan Carr and Starks about T-Mobile/Sprint’s concessions to the FCC, which include provisions on the combined company’s mobile virtual network operator (MVNO) relationship with Altice. “Altice’s wholesale agreement with Sprint is critical to its entry” into the U.S. market, said a Friday filing in docket 18-197. “Given Altice’s investment in the wireless core, and the time it takes to build out wireless infrastructure, Altice emphasized the need for T-Mobile to commit to an extension of Altice’s current deal with Sprint to ensure that Altice can continue to bring the benefits of facilities-based competition to consumers over the long term.”