FCC Pauses Proposed Sprint-T-Mobile Merger

14 September, 2018, 11:27 | Author: Sammy Rose
  • FCC Pauses Proposed Sprint-T-Mobile Merger

The Federal Communications Commission has paused the 180-day clock on its review of the T-Mobile and Sprint merger to give it more time to examine the transaction. Seems fair enough. "The clock will remain stopped until the Applicants have completed the record on which they intend to rely and a reasonable period of time has passed for staff and third-party review", concludes the letter. An enlarged T-Mobile can quickly build a next-generation - so-called 5G - network giving more people access to speedy broadband, the companies told the FCC in June.

A "substantially revised" network engineering study submitted September 5 "is significantly larger and more complex than the engineering submissions already in the record", the agency said in a letter to the companies that it distributed by email on Tuesday.

We appreciate that the FCC is taking the time necessary to fully understand the merits of the T-Mobile and Sprint merger.

So, in essence, TMUS recently made a decision to offer up a bunch more material in support of the merger and the FCC needs more time to review it.

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The FCC said the extra time is needed to assess updated engineering and economic modeling information submitted in connection with the merger. It appears to incorporate new logic, methodologies, facts, and assumptions, on a subject central to the Applications-the transaction's claimed network benefits.

The FCC is also awaiting the submission of "additional economic modeling" supporting the merger from T-Mobile. It also needs to review a new business model referred to as "Build 9".

A business model detailing how the combined firm would provide "financial basis for the projected new network buildup" wasn't submitted until September 5. "The Commission will decide whether to extend the deadline for reply comments after receiving the remainder of the Applicants' modeling submissions". "We are confident that this transaction is pro-competitive, good for the country and good for American consumers, and we look forward to continuing to work with the FCC as they evaluate our plans".

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