Opponents of Sprint and T-Mobile US’ proposed merger seized on recent fraud allegations against the former, arguing regulators should halt review of the deal until a probe is complete.
In a petition, a coalition of nine organisations pressed the Federal Communications Commission (FCC) to delay an expected vote on the merger until claims that Sprint illegally accepted payments [1] for 885,000 inactive subscribers on the government’s Lifeline subsidy programme are fully investigated.
It added FCC precedent “is clear that a company cannot sell or transfer a licence when the company’s fitness to hold a licence is at issue”.
The group also urged the FCC to reopen public comment on the matter, arguing the review process has been “highly unusual”.
It noted FCC chairman Ajit Pai and two other commissioners declared their support for the deal before the conclusion of both analysis by agency staff and the Department of Justice’s (DoJ) antitrust review. The coalition also reiterated previous assertions [2] that conditions imposed by the DoJ [3] “raise new and important public interest and competition issues related to execution risk” which warrant public input.
The filing was backed by the Communications Workers of America; Rural Wireless Association; NTCA – The Rural Broadband Association; and Consumer Reports, among others.
FCC officials previously brushed off [4] calls for further comment and review, noting there had been “multiple” input cycles. Pai in August announced plans to hold a vote on the matter, but has yet to set a date.
Sprint and T-Mobile still face a lawsuit from state officials seeking to block the deal. Pennsylvania became the 17th state to join the case in September.
Seven states have come out in favour of the merger.
[1] https://www.mobileworldlive.com/featured-content/top-three/sprint-accused-of-subsidy-abuse/[2] https://www.mobileworldlive.com/featured-content/home-banner/fcc-chief-pushes-for-sprint-t-mobile-approval/
[3] https://www.mobileworldlive.com/featured-content/home-banner/sprint-t-mobile-merger-wins-doj-approval/
[4] https://www.mobileworldlive.com/featured-content/top-three/fcc-resists-pressure-to-extend-merger-review/
