Facing what it sees as an onerous and lengthy process of submarine cable system licensing and permitting, the submarine cable industry is hoping the new White House administration offers a path to streamlining and speedier turnarounds. The FCC approval process used to be roughly 14 months, but now it sometimes reaches two years, said Sarah McComb, Amazon Web Services (AWS) principal business developer overseeing its undersea cable development activity in the Pacific. "That's just too long," she told an Information Technology and Innovation Foundation webinar Wednesday.
The Committee for the Assessment of Foreign Participation in the U.S. Telecommunications Services Sector, also known as Team Telecom, notified the FCC this week that it's reviewing Bell Canada's proposed acquisition of Ziply Fiber (see 2412090045). The deal is straightforward, and “there is no significant risk to the transaction being approved,” New Street's Blair Levin said Thursday. But, he added, approval may get caught up in President Donald Trump’s pursuit of tariffs.
The Committee for the Assessment of Foreign Participation in the U.S. Telecommunications Service Sector notified the FCC it’s begun reviewing T-Mobile’s proposed acquisition of wireless assets from UScellular (see 2405280047). The committee is informally known as Team Telecom. “The Commission will be notified when the [committee] Chair has determined that responses to the Committee’s initial request for information are complete and the 120-day initial review period can begin,” said a filing posted Wednesday in docket 24-286. The FCC last month referred the transaction to the committee at its request (see 2411260041).
The FCC Wireless Bureau said it's examining carriers' numbering resource utilization and forecast (NRUF) reports and carrier-specific local number portability (LNP) data as it examines the T-Mobile/UScellular deal; it doesn't plan to disclose the data publicly. Consistent with past practices, "we will make such information available to participants in this proceeding, but limit such access to their Outside Counsel of Record and Outside Consultants whom they retain to assist them in this proceeding, and their Outside Counsel’s and Outside Consultants’ employees,” said a Tuesday order in docket 24-286. The bureau said in a separate notice providers have until Dec. 6 “to oppose the limited disclosure of their NRUF and LNP data pursuant to the protective order.” T-Mobile announced in May a plan where it will acquire “substantially all” of UScellular’s wireless operations in a deal valued at about $4.4 billion, including $2 billion in assumed debt (see 2405280047). Also Tuesday, the FCC referred the transaction to the Committee for the Assessment of Foreign Participation in the U.S. Telecommunications Service Sector. The agency wants a review of “national security or law enforcement concerns related to the applications." DOJ requested that step (see 2411200013). The committee is informally known by its former name, Team Telecom.
The Committee for the Assessment of Foreign Participation in the U.S. Telecommunications Service Sector asked the FCC to refer to it T-Mobile’s proposed buy of wireless assets from UScellular (see 2405280047) for further examination. DOJ asked for the referral “to determine whether these applications pose a risk to the national security or law enforcement interests” of the U.S., said a filing this week in docket 24-286. The committee -- informally known by its former name, Team Telecom -- is an interagency review body composed of DOJ, DOD and the Department of Homeland Security. DOJ “believes that such risk may be raised by the foreign participation (including the foreign relationships and ownership) associated with the applications, and a review by the Committee is necessary to assess and make an appropriate recommendation as to how the Commission should adjudicate these applications,” the filing said. It cites executive order 13913 issued in 2020 by then-President Donald Trump. Meanwhile, petitions to deny the transfer of UScellular authorizations and spectrum licenses to T-Mobile are due Dec. 9 (see 2410300051), but the National Wireless Independent Dealer Association (NWIDA) made its opposition known on Wednesday. NWIDA cited “T-Mobile's documented history of post-merger conduct that has proven detrimental to independent dealers and the communities they serve.” T-Mobile’s conduct, “particularly following the Sprint acquisition, demonstrates a concerning trend of eliminating independent dealers despite pre-merger assurances,” the group said: “Currently, T-Mobile faces multiple lawsuits from independent dealers, and their Chief Operating Officer has publicly expressed a preference for corporate-owned stores over independent dealers.”
The submarine cable rules rewrite NPRM on the FCC's Nov. 21 meeting agenda (see 2410310048) will likely see resistance from subsea cable operators, who question proposals on shorter license terms, subsea cable experts told us. However, one said a 5-0 approval of the draft NPRM is likely. It's less clear whether the next FCC will make draft rules from the NPRM a priority, the expert added.
Consideration of license transfers from Intelsat to SES as part of SES' planned $3.1 billion purchase of Intelsat (see 2405310004) is on hold pending a review by Team Telecom, the FCC Space Bureau said. The Committee for the Assessment of Foreign Participation in the U.S. Telecom Services Sector is Team Telecom's formal name. In docket 24-267 comments this week, cable and satellite interests raised the idea of conditions related to New SES' C-band assets on the requested license transfers. Cable operators and programmers distribute video programming using Intelsat’s and SES’s C-band downlinks, and the FCC should ensure that they continue providing the same quality of service in the C band, said NCTA. It said SES and Intelsat assertions that cable operators can use terrestrial fiber for distribution are "untrue." The FCC, NCTA added, shouldn't accept commitments about New SES' use of C-band licenses that would jeopardize video distribution in that spectrum. SES and Intelsat each control just shy of 50% of the video content distribution by satellite market in the U.S., said Eutelsat/OneWeb, and the FCC should consider whether conditions are needed on SES/Intelsat to address competitive impacts. Eutelsat/OneWeb didn't suggest possible conditions. The SES transaction would seem to help ensure Intelsat can continue following the core principles set out in its 2001 reorganization from an international organization to a private company, said the International Telecommunications Satellite Organization, which owned and operated Intelsat pre-2001. ITSO said Intelsat in recent years hasn't provided sufficient funding to the organization, and a better funding approach needs to be established.
An order approving Audacy’s request for a temporary exemption from the foreign-ownership rules was adopted but isn’t expected to be released before next week, FCC officials told us. The waiver would allow Audacy to complete foreign-ownership review after it finishes a bankruptcy restructuring that involves control of the broadcaster passing to a fund affiliated with George Soros' family. FCC Republicans hadn’t submitted dissenting statements Wednesday afternoon but indicated they plan to do so, the agency officials said. Broadcast industry officials, attorneys and others told us the Audacy transaction wouldn’t attract as much attention without Soros’ name attached, and that radio broadcasters have long sought increased private equity investment in their industry. “They’re making it a political ax,” said Christopher Terry, University of Minnesota media law professor. “The radio industry has been cash-strapped for 20 years.”
The “must-vote” clock on radio group Audacy’s request for a temporary waiver of FCC foreign-ownership rules is set to expire Wednesday, and FCC officials told us they're expecting its approval, though at least one Republican will dissent on what in several past proceedings has been a routine request. Audacy, which owns more than 200 stations and is the second-largest radio group in the U.S., is seeking the waiver to allow it to first complete a bankruptcy restructuring that has George Soros-affiliated entities purchasing its stock. The FCC’s Democrats have already voted the item, agency officials told us.
Representatives of both companies met virtually with FCC staff on T-Mobile’s proposed acquisition of Mint Mobile (see 2303150032), a low-cost prepaid wireless brand, and other assets from Ka’ena. T-Mobile “provided an overview” of its “internal processes and business policies, including with respect to customer information and data management,” said a filing Tuesday in docket 23-171. The companies “emphasized that the applications have now been pending for eleven months, that no filings opposing the applications were submitted during the comment period, and that Team Telecom carefully reviewed the Applicants and the proposed transaction and filed its no-objection letter with the Commission over two months ago.” The filing references a presentation made at the meeting, which was redacted. Team Telecom refers to the Committee for the Assessment of Foreign Participation in the United States Telecommunications Services Sector.