Senate Democrats Urge Feds Review T-Mobile/UScellular Deal, Maybe Unwind Sprint Buy
Sen. Elizabeth Warren of Massachusetts and five other Senate Democratic caucus members urged that the FCC and DOJ's Antitrust Division “closely scrutinize” T-Mobile’s proposed acquisition of UScellular’s wireless operations Monday night (see 2405280047). Wireless industry lawyers previously forecast the deal could face a tough road under the Biden administration. Its future could change depending on the outcome of November's presidential election (see 2405300053).
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The FCC “should not approve the transfer of UScellular’s” spectrum licenses “to T-Mobile if it does not serve ‘the public interest, convenience, and necessity,’” Warren and the other senators said in a letter to Chairwoman Jessica Rosenworcel and DOJ Antitrust leader Jonathan Kanter. DOJ Antitrust “should challenge the deal if it substantially reduces competition.” Bernie Sanders, I-Vt., also signed the Warren-led letter along with Amy Klobuchar (Minn.), who chairs the Antitrust Subcommittee, Richard Blumenthal (Conn.), Cory Booker (N.J.) and Chris Murphy (Conn.).
The senators urged the FCC and DOJ Antitrust to keep in mind the “foreseeable and harmful effects” of the 2020 T-Mobile/Sprint combination (see 2004010069) as it assesses the UScellular deal. DOJ Antitrust should now “closely review” T-Mobile’s compliance with the terms of the department’s judgment allowing the Sprint deal to proceed, the senators said. DOJ should “take appropriate action, including considering unwinding the 2020 T-Mobile/Sprint merger,” if it “finds that T-Mobile has failed to abide by the terms of the Final Judgment, or that the terms need to be strengthened or extended to address transaction-related harms, or if the DOJ finds T-Mobile has otherwise violated antitrust law.”
T-Mobile’s UScellular purchase “would further deplete competition in the industry, combining the third- and fourth-largest wireless carriers (by facilities-based subscribers) and giving T-Mobile access to four million new customers,” the lawmakers said. “Additional consolidation in the market would have far-reaching effects, reducing choices for consumers, further concentrating wireless spectrum holdings, and potentially leading to higher prices and other harms for consumers across the country.”
T-Mobile believes the deal “is an opportunity for [the carrier] to build on UScellular’s business and deliver more for customers of both companies while spurring even more growth and competition in wireless and beyond,” a spokesperson said in an email. “T-Mobile will be able to offer exceptional value for millions of UScellular customers in the form of lower prices, a supercharged network experience and tremendous value -- and consumers from all providers will benefit. We’ve got a great track record when it comes to delivering competition-enhancing shifts that have benefited our customers and consumers and look forward to sharing more in our FCC filing in the coming months.”