Public Knowledge Asks FCC to Reject AT&T’s Buy of Leap Wireless
Public Knowledge asked the FCC to deny approval of AT&T’s proposed buy of low-cost carrier Leap Wireless. The request came in a petition filed Friday at the FCC. The Competitive Carriers Association, meanwhile, filed at the FCC asking the agency to attach conditions to the merger. The Rural Wireless Association also planned to file in opposition to the deal, said General Counsel Carri Bennet. AT&T and Leap unveiled the deal in a surprise announcement in July (CD July 15 p1). PK had been a leading opponent of AT&T’s unsuccessful move to buy T-Mobile, and was joined on its petition by Consumer Action and Writers Guild of America.
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"The proposed transaction threatens the public interest because it would further consolidate wireless spectrum and harm competition in the prepaid wireless market,” the petition said (http://bit.ly/199dvOG). “The Applicants fail to meet their affirmative burden to show that these harms are outweighed by potential public interest benefits, and the Commission should accordingly deny the Applications.”
"Leap offers low-cost and pre-paid options to millions of wireless subscribers, and we're concerned that these customers could be left behind by this transaction,” said John Bergmayer, PK senior staff attorney, in a written statement. “Low-income, immigrant, and minority communities could be hardest hit. Additionally, wireless competition helps ensure that all subscribers have access to diverse voices and a wide choice of services. In addition, Leap controls a lot of radio spectrum, something wireless operators need access to to provide service."
"The Commission finds itself at a competitive crossroads with the review of yet another secondary market transaction involving AT&T, one of the two dominant wireless carriers,” CCA said in a filing made available Friday: “The Twin Bells have come to dominate the wireless industry by any conceivable metric -- including spectrum holdings, share of subscribers, and share of revenues -- and have used their dominant positions to impede competition and impair rivals’ access to critical inputs.” CCA proposed that the FCC review all of AT&T’s spectrum holdings “and where (in the aggregate) AT&T exceeds the spectrum screen, require AT&T to divest comparable spectrum to that which it is acquiring.” CCA also urged the FCC to condition approval on AT&T’s commitment to offer 3G and 4G LTE voice and data roaming “under the same terms and conditions negotiated by competitors with Leap."
"Combining AT&T’s nationwide network with Leap’s prepaid/no-contract business will benefit consumers seeking a high-quality, competitively-priced prepaid wireless experience,” AT&T and Leap said in the public interest statement they filed in August at the FCC in support of the merger (http://bit.la/1d4kr5r).