Dish Network must respond immediately to data requests by the California Public Advocates Office in the Public Utilities Commission’s T-Mobile/Sprint review, CPUC Administrative Law Judge Lee Bemesderfer ruled Tuesday in docket 18-07-011. PAO asked CPUC to compel response (see 1911060021), but Dish said the requests were outside the proceeding's scope, which it argues is limited to the carriers’ original application. Bemesderfer said the requests were within the scope “because they seek information regarding the effect of the new DOJ and FCC commitments on the original application, which falls squarely within the amended scope of this proceeding.” The requests “are not so vague and ambiguous that they cannot be answered,” the ALJ said. Dish declined comment Wednesday.
Judge Victor Marrero of U.S. District Court for the Southern District of New York denied a motion by experts to file an amicus brief in favor of T-Mobile/Sprint in the state challenge to the proposed deal. “This motion comes over two weeks after the completion of post-trial closing arguments, and the Court is not persuaded that the amicus brief would be sufficiently timely or useful to be of assistance at this time,” said Tuesday's order (in Pacer) in docket 1:19-cv-05434. George Bittlingmayer, Harold Furchtgott-Roth, Tom Hazlett, Justin Hurwitz, Jonathan Klick, Kevin Tsui, Glenn Woroch, Joshua Wright and John Yun sought to file. “After conceding that district courts have ‘broad discretion’ to allow the filing of amicus briefs, Plaintiffs ask this Court to deny the instant motion and thereby disregard the views of experts in the field of antitrust economics who strongly disagree with many of the views expressed in the amicus brief in support of Plaintiffs,” they pleaded Monday (in Pacer).
DOJ, reviewing its settlement with T-Mobile/Sprint/Dish Network under the Tunney Act, asked U.S. District Judge Timothy Kelly in Washington to move forward with a decision. “The proposed Final Judgment will provide substantial long-term benefits for American consumers by, among other benefits, ensuring that large amounts of currently unused or underused spectrum are made available to American consumers in the form of two new advanced 5G networks,” said a Monday pleading (in Pacer) in docket 1:19-cv-02232: “The proposed Final Judgment further provides for a substantial divestiture which, when combined with the mobile wireless spectrum already owned by DISH … will enable DISH to enter the market as a new 5G mobile wireless services provider as well as an additional nationwide facilities-based wireless carrier.” Justice noted states challenging the deal in U.S. District Court in the Southern District of New York “have declined again in their second amicus brief to take a position on the specific question before this Court, and they agree with the United States that their merger challenge and this Tunney Act proceeding present different legal questions under two different statutes.” Dish also filed. “The carefully-crafted remedy imposed by the United States addresses the competitive harm alleged to result from the merger by, among other things, facilitating and accelerating DISH’s entry into the consumer mobile wireless market,” the company said (in Pacer). “Having DISH competing head-to-head with AT&T, Verizon, and New T-Mobile will ‘provide substantial long-term benefits for American consumers.’”
Voxx bought the assets of Vehicle Safety Holding Corp. for $16.5 million, it said Monday. VSHC’s Vehicle Safety Manufacturing and Rostra Brands supply safety-oriented electronics, including turn signal switches; lighting products; obstacle-sensing, cruise control and camera systems; and specialized harnesses. The acquisition brings new solutions in a “stable and growing market," along with new distribution channels and customers, said Voxx CEO Pat Lavelle. Voxx said it expects the purchase to add $28 million in annual revenue. Voxx is looking at other acquisitions to improve growth, Lavelle said. Voxx inventors frustrated with the stock’s low share price have taunted Lavelle on recent quarterly calls to sell the company’s component parts and return the cash proceeds to shareholders (see 1907110025). Shares closed 0.5 percent lower Monday at $4.28.
Prepaid Wireless Group supported the T-Mobile/Sprint/Dish Network settlement, in Tunney Act review of DOJ's settlement before U.S. District Court Judge Timothy Kelly. PWG said (in Pacer) Friday the government accord "would be in the public interest by fostering a competitive wireless market for the 5G era. By extending existing T-Mobile and Sprint agreements with MVNOs [mobile virtual network operators] under their current terms and conditions for a minimum of seven years, the Settlement would preserve competition in the wireless market and put downward pressure on prices." The court denied a request by NTCH to file an amicus brief. The Rural Wireless Association, New America’s Open Technology Institute and Consumer Reports filed that the deal should be denied. “The proposed merger between T-Mobile and Sprint would result in a four-to-three reduction in the number of nationwide wireless service providers, and the Division has already demonstrated that the merger as it was proposed would diminish competition substantially.” Former FCC Commissioner Harold Furchtgott-Roth said the question before the court is straight forward. “There is no requirement that DISH replace Sprint as a competitor or that the market be restored to ‘ex ante competitive conditions,’” he said (in Pacer). “The goal of the Proposed Final Judgment is to address the likely anticompetitive effects of an acquisition.”
California Public Utilities Commissioners won’t vote on T-Mobile buying Sprint until at least March because it missed Tuesday’s deadline to issue a proposed decision 30 days before its Feb. 27 meeting. The next meeting is March 12. “There’s no particular reason, though, to expect a draft decision to be published in time to make that meeting,” Tellus Venture Associates President Steve Blum blogged Wednesday. “Or any in March. April could be in doubt, too.”
Dish Network won’t sign any strategic partnerships for its potential wireless business until after a decision by U.S. District Court for the Southern District of New York on states' challenge of T-Mobile's Sprint buy, said Dish Chairman Charlie Ergen in closed-door testimony Dec. 18. Dish had been talking to some of the potential partners for several years, but the deal was “a catalyst for them to engage in more serious and timely discussions,” he testified, according to a redacted transcript (in Pacer) released Tuesday. Dish expects to be "a little larger than Sprint” by 2025, including prepaid and postpaid subscribers but not wholesale customers, he said. Dish’s model shows it could be competitive and generate enough profit and cash flow to grow the business, he said. Plaintiff states in Jan. 15 closing arguments sought to cast doubt on Ergen's "rosy" predictions in the business model he presented in the closed-door testimony (see 2001150077).
Antitrust authorities cleared the way for Accenture to buy Symantec’s cybersecurity services business from Broadcom. Financial terms of the deal announced during CES week weren’t disclosed. It’s expected to close in March. An FTC early termination notice dated Monday and released Tuesday ended the transaction's Hart-Scott-Rodino waiting period.
Competitive telcos support T-Mobile buying Sprint, with Dish Network entering as a fourth national carrier, Incompas said in a Friday amicus brief (in Pacer) at U.S. District Court in Washington. “This creative settlement not only remedies the effects of what would otherwise be an increase in market concentration, but affirmatively improves the competitive conditions in that market to boot,” it told the court conducting the Tunney Act review. Dish will likely “provide wholesale capacity to carriers and enterprises at low prices reflecting its low marginal costs,” Incompas said.
Antitrust authorities cleared the way for Xperi to buy TiVo. The all-stock deal has an enterprise value of $3 billion and is expected to close in Q2 (see report, Dec. 20). An FTC early termination notice dated Tuesday and released Wednesday ended the transaction's Hart-Scott-Rodino waiting period.