Clyburn Advising T-Mobile/Sprint, Which Commits to Not Raising Prices as Rivals Slam Deal
Former FCC Commissioner Mignon Clyburn agreed to work as a paid adviser on T-Mobile’s proposed takeover of Sprint, she confirmed in an interview Monday. The Democrat had opposed some deals while at the FCC but voted in the 4-1 majority…
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that approved Comcast/NBC Universal (see 1101190091). “I am advising T-Mobile/Sprint as they seek to accelerate the creation of an inclusive, nationwide 5G network, on how best to build a bridge across the digital divide,” Clyburn said. “Affordable broadband access is a critical priority of mine, it has been and always will be, particularly for those Americans who are underserved or currently have no viable options.” Clyburn noted other former government officials also signed on. Republicans including former Commissioner Robert McDowell and former NTIA administrators Nancy Victory and John Kneuer also have worked for the deal. Earlier Monday, T-Mobile CEO John Legere urged the FCC to “move forward expeditiously." His letter to Chairman Ajit Pai reassured that the deal won't mean higher prices. “Critics of our merger, largely employed by Big Telco and Big Cable, have principally argued that we are going to raise rates right after the merger closes,” he said in docket 18-197. “I want to reiterate, unequivocally, that New T-Mobile rates are NOT going to go up. Rather, our merger will ensure that American consumers will pay less and get more.” In a second filing Monday, the companies committed to keeping legacy rate plans in place for three years after the merger “or until better plans that offer a lower price or more data are made available, whichever occurs first.” The companies said plans could be adjusted to reflect “pass through” costs, such as increases in government taxes or fees. The 4Competition Coalition responded that "committing to not raise ‘rate plans’ for three years is an empty promise that does not provide any real price protection." The "pledge is riddled with loopholes and ensures that any network improvements will allow them to justify higher monthly bills," said the coalition that includes AFL-CIO, Communications Workers of America, Common Cause and other public interest groups, C Spire, Dish Network and NTCA. New Street’s Blair Levin told investors, meanwhile, DOJ apparently “never had to slow down its work in taking depositions, meaning that while the [federal] shutdown likely delayed the final resolution, the delay may not be as great as the 35 day shutdown." The FCC was on hold but "staff is working closely with the DOJ staff and can quickly come back up to speed,” he said: A House letter supporting approval (see 1901300044) was a positive for the deal, but a Feb. 13 House Commerce and Judiciary committees' hearing (see 1901280051) presents risks. Executives could say "things at odds with their filings or make other statements that could create problems,” Levin said. Another potential negative is the number of state investigations (see 1901040041), he said.