FSF Submits Comments in T-Mobile and MetroPCS Proceeding
ROCKVILLE, MD - Free State Foundation President Randolph J. May and Research Fellow Seth L. Cooper submitted comments today to the Federal Communications Commission in the agency's proceeding to review the applications for assignment of licenses resulting from T-Mobile's proposed transaction to combine with MetroPCS. Below is the "Introduction and Summary" of the comments, without the footnotes. A PDF of the full comments, with the footnotes, is available here. ***
Introduction and Summary
These comments are submitted in connection with the review of the applications for assignment of licenses resulting from T-Mobile's proposed transaction to combine with MetroPCS.
The Commission should evaluate proposed mergers involving transfers of wireless spectrum licenses with a view towards recognizing the innovative forces that characterize the wireless market. This means acknowledging the competitive conditions as well as technological and market imperatives for delivering breakthrough products and services, including ongoing migration to next-generation 4G LTE and beyond networks. It also means the Commission's public interest analysis should acknowledge and take into account competing services offered by other national providers, regional and local wireless providers, mobile virtual network operators (MVNOs), as well as cross-platform wireline providers.
The Commission should not use its powers to interfere with the terms of the proposed merger absent compelling evidence of potential anticompetitive conduct and consumer harm. To do otherwise means substituting the Commission's own judgments for those of the applicants. Nor should the Commission manipulate its review standards through ad hoc, arbitrary adjustments to its public interest analysis or spectrum screen. Moving the analytical goalposts in novel ways in the course of reviewing mergers undermines the integrity of the process.
By combining MetroPCS's spectrum, wireless infrastructure, and other resources with its own, T-Mobile seeks to speed up and expand its deployment of 4G LTE services to meet growing demands for data-rich wireless broadband services. Consumers stand to gain from a more rapid migration to next-generation wireless services resulting from the proposed merger.
Significantly, the transaction does not reduce the number of nationwide competitors. Nor does it appear to reduce the number of competitors in any local market in any significant respect. Meanwhile, T-Mobile/MetroPCS would likely not exceed the agency's spectrum screen triggers.
In sum, considered in a proper analytical framework, this proposed combination will likely improve the competitive standing of T-Mobile/MetroPCS in reaching wireless consumers across the nation and thus serve the public interest.
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A PDF of these comments, with the footnotes, is here.
The Free State Foundation is an independent nonprofit, Section 501(c)(3) free market-oriented think tank.
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