Leaping CPUC Could Land T-Mobile in Court

the PUC issues a final decision. Both carriers “have California subsidiaries that are public utility telephone corporations under state law, and subject to the jurisdiction of this agency,” so merging California operations needs commission OK, the commissioner wrote in docket A.18-07-011. T-Mobile didn’t comment Thursday. Litigation is certain, blogged Tellus Venture Associates President Steve Blum, predicting the carriers will ignore the order. “T-Mobile says its mobile business isn’t governed by California law. Rechtschaffen says it is, and it’s a good bet his fellow commissioners agree.” The agency “could sue to enforce its claimed jurisdiction over wireless mergers,” American Enterprise Institute Daniel Lyons blogged Thursday. “Even if it won, it would be difficult to unwind the merger.” Stakes “may be higher than simply California’s ability to attach conditions to the deal,” he said. “Other states may be satisfied with the law’s present ambiguity and have reason to fear a court battle that might limit state authority further.” Communications Workers of America slammed closing early, commenting to seek conditions to preserve jobs, current pay levels and employee rights. The California Emerging Technology Fund mostly supported the CPUC’s proposed conditional OK, asking the commission make the carriers' commitments to CETF enforceable and scale back some new proposed conditions. Proposed conditions aren’t enforceable and don’t mitigate anti-competitive effects, commented CPUC’s Public Advocates Office. They don’t protect universal service, said The Utility Reform Network. The deal would harm communities of color, said the Greenlining Institute.