180 Days and Counting

FCC Must Raise Diversity Issues Before Approving SoftBank/Sprint, MMTC Says

May 29, 2013 by Howard Buskirk|Top News

"As you and other Commissioners have recognized, the Commission is charged with not only safeguarding, but advancing the public interest through its role in approving transactions involving Commission licensees,” said the letter, signed by MMTC President David Honig. “This means that it is not sufficient to put forth minimum qualifications and cite to ephemeral benefits. The applicants must make a positive showing of how the transaction will produce concrete benefits for consumers, including historically underserved and underrepresented groups. ... SoftBank’s record, and its forward looking commitments to these diversity issues, are especially critical to the Commission’s public interest determination because SoftBank is a new entrant to the U.S. market, and the Commission has not yet had an opportunity pass on SoftBank’s qualifications to hold Commission licenses."

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The FCC should ask for additional information from the principals on whether the SoftBank/Sprint Nextel/Clearwire deal will serve the “public interest, convenience, and necessity,” especially in regard to minorities, the Minority Media and Telecommunications Council said in a letter Tuesday to acting FCC Chair Mignon Clyburn. The letter came the day before day 180 of the FCC’s unofficial 180-day deadline for reaching a decision on the transaction. FCC officials said Tuesday it seems plausible Clyburn could circulate an order on the deal soon, though they have heard nothing conclusive so far. While not the largest transaction, it’s unusually complicated, especially since Dish Network put a rival offer on the table for Sprint (CD April 16 p1).

The letter posed a number of questions. “How will the transaction affect Sprint employment in the United States? How would the companies incorporate increased recruitment and training in majority-minority communities?” the letter asked. “What is SoftBank’s explanation for the reported requirement of a valid passport for the purchase of an iPhone in Japan, and can SoftBank commit to not imposing overly burdensome identification requirements in the United States?"

In another development, Clearwire’s board Tuesday in an open letter asked stockholders to vote for Sprint’s proposed buy of the rest of the company (http://bit.ly/17nZAcM). “Last week, Sprint increased its offer for Clearwire to $3.40 per share, significantly improving the value of the proposed combination,” said the letter signed by John Stanton, executive chairman of the board. “For me and my fellow directors, the decision about voting FOR Clearwire’s proposed merger with Sprint is clear. It is quite simply the best strategic option for all stockholders, and I once again encourage you to vote your shares FOR all of the proposals relating to the transaction with Sprint.”