AT&T Stockpiling More 700 MHz Spectrum Threatens Interoperability

AT&T Mobility since its T-Mobile merger was shot down is attempting smaller spectrum acquisition deals like the one they had with Qualcomm that was approved. Despite AT&T losing some AWS spectrum to T-Mobile as part of the breakup agreement they gained some licenses to 700 MHz airwaves from Qualcomm and now want more from 700 MHz LLC even if threatens any future hope of 4G LTE Interoperability (700 MHz Interoperability 12-69). To submit non-docketed comments/pleadings or confidential pleadings to the FCC regarding this application groups or individuals participating must have registered with the FCC to participate in Universal Licensing System proceedings. Once logged in a pleading for ULS File Number 0005262760 which is the file number associated with this application can be submitted. Petitions to Deny this application are due by July 25th, 2012 with Oppositions due August 6th, 2012 and Replies due August 13th, 2012. I have already participated in this proceeding myself submitting my concerns stating why the deal should either be conditionally approved or denied. As it is much smaller than AT&T T-Mobile merger and is purely a spectrum swap there are less competitive concerns than there were for that proposed merger but some concerns do exist that need addressing.

As noted above the transaction(s) at issue here could further derail or threaten any future hope for 4G LTE device carrier interoperability among carriers offering 4G LTE services and as such the FCC should carefully review and evaluate all the evidence submitted for or against the transaction(s) at issue here. The FCC as I will explain in an upcoming article should implement and enforce 700 MHz interoperability rules which will benefit smaller carriers and foster greater competition. This is because the Big 2 carriers AT&T and Verizon have benefited from a non interoperable wireless market even making devices on their own networks incompatible with each other’s network. So not only are devices on AT&T’s network incompatible with those pof smaller carriers including Sprint Nextel, T-Mobile USA, MetroPCS, Leap Wireless (Cricket), U.S. Cellular, C-Spire (Cellular South) etc but devices on AT&T’s network are also incompatible with those on Verizon’s network and vice versa.

T-Mobile Call Center Layoffs Results in AT&T Disingenuous Attack on FCC

A few weeks back it was announced that T-Mobile USA which survived a takeover attempt from AT&T Mobility would layoff several call center workers. AT&T which has also laid off call center workers reacted saying their merger could have saved these jobs. Never mind the fact that many duplicative jobs would have been lost as a result of the merger in retail and engineering and that the takeover was anti-competitive as AT&T believes that it could have saved these jobs had the merger occurred.

AT&T is now publicly criticizing the FCC like a sore loser upset at the denial of their merger. Even though they got a nice consolation prize in the form of 700 MHz of unused wireless spectrum from Qualcomm that regulators allowed AT&T to acquire they want to resort to petty attacks against this agency. The fact is the U.S. Department of Justice and the Federal Communications Commission denied the merger because it was found to be anti-competitive and not in the public’s interest to have even fewer choices in the nationwide market for wireless service providers.

Their deceptive attempt to Monopolize Everything using their PR campaign “Mobilize Everything” rightly backfired on them and now they need to just move on. AT&T’s arrogance in assuming the merger was a done deal and suggesting to the public their opinion didn’t matter if they were opposed to the merger helped torpedo the takeover. From the start the “inevitable” merger of AT&T Mobility with T-Mobile USA was rightly under intense government scrutiny as it proposed making an already concentrated wireless market even less competitive. Fortunately, regulators were not willing to allow anymore consolidation on such a massive scale in the U.S. wireless market despite all of AT&T’s lobbying and advertising the merger was killed.

U.S. FTC Concerned by AT&T Mergers FCC Investigating

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Even before the U.S. Department of Justice filed its antitrust lawsuit to block the anti competitive, anti consumer jobs killing AT&T T Mobil merger apparently the U.S. Federal Trade Commission and Federal Communications Commission had serious concerns about the deal and the proposed transaction for AT&T to also acquire Qualcomm’s spectrum.  In fact the Federal Communications Commission has launched a joint investigation of both proposed mergers since it rightly decided to combine its review of both deals. If you too are rightly concerned by the possibility for greater abuse by AT&T if either merger or both mergers were approved suggest emailing a letter to the U.S. Federal Trade Commission’s Competition Bureau via antitrust@ftc.gov.

If you do so I would suggest your letter to the FTC include your name, mailing address and a daytime telephone number. Also suggest submitting any critical comments of either or both of AT&T’s proposed mergers in the FCC’s docket regarding the proposed AT&T T Mobil merger (11-65) asap. You can also write the Federal Communications Commission via e-mail. Each Commissioner has their own email address. The Chairman’s is julius.genachowski@fcc.gov, Commissioner Michael Copps can be emailed via michael.copps@fcc.gov, Commissioner Mignon Clyburn’s email is mignon.clyburn@fcc.gov, and Commissioner Robert McDowell’s email is robert.mcdowell@fcc.gov. You can also email comments to the FCC at info@fcc.gov and/or fccinfo@fcc.gov. Finally even though Justice has already filed its antitrust lawsuit and a trial date has been set for next February (2012) suggest consumers opposed to either or both mergers email the US Justice Department’s Antitrust Division if they haven’t done so already via antitrust.complaints@usdoj.gov and emailing the US Justice Department directly at AskDOJ@usdoj.gov.

Why Internet Companies Should Oppose AT&T T Mobil Merger

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Internet companies especially those rightly supporting Net Neutrality should worry about the potential of the job killing, competition and consumer choice reducing AT&T T Mobil merger. The merger which would likely result in higher prices would also give AT&T more market power and increased incentive to discriminate against innovators and users online. Nonetheless some technology companies like Facebook, Microsoft, Oracle, and Yahoo have unfortunately chosen to support the merger. Whether or not they are aware of the risks to the wireless market and chose to ignore them or naively chose to believe AT&T’s empty promises that if it wins approval for the deal it will expand mobile broadbnd access is unclear.  One thing is certain though one web company Google is strangely silent on the issue of this merger.

Google which has been a longtime supporter of Network Neutrality at least up until last year when it reached a controversial deal with Verizon Wireless on a Network Neutrality framework exempting nondiscrimination requirements from wireless services has been silent on this telecommunications merger. Last year when they announced their pact with Verizon Wireless they were criticized by Facebook and a number of public interest groups and pro Net Neutrality activists.

On the issue of Microsoft’s support for the merger remember this is the same company taken to court by antitrust regulators in the US Department of Justice for trying to illegally monopolize the market for web browsing software. So Microsoft’s no champion of the Open Internet and their past history proves such. However, for Google a previous supporter of openness and nondiscrimination to have made that pact with Verizon Wireless was really outrageous. What’s more outrageous is their silence on the issue of the AT&T T Mobil and Qualcomm mergers as well as Facebook’s support of the merger.

Eleventh Blog Entry Sat Sept 3

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Great news for consumers and the wireless market. The United States Department of Justice has filed an antitrust lawsuit to block AT&T Mobility’s merger with Deutsche Telecom’s T Mobil USA having found the merger to be anti competitive. Despite all of AT&T’s lobbying efforts consumers who wrote to the Department of Justice’s Antitrust Division asking that DOJ block the merger have succeeded in convincing Justice to deny this awful merger for consumers and innovators in the wireless market. The merger of AT&T and T Mobil USA would enable Ma Bell to establish a new anti competitive Ma Cell in the wireless market. The merger despite AT&T’s lies would actually destroy jobs in the country and reduce consumer choice. Justice having reviewed the facts made the smart choice in blocking the merger between the country’s second largest wireless carrier and the fourth. The merger after all would substantially reduce competition in the wireless phone market for post-paid cellular phone service. The Federal Communications Commission Chairman Julius Genachowski who says his agency is still reviewing the information submitted from supporters and opponents of the deal says his agency also has serious concerns about the transaction. Furthermore considering the FCC has never approved a merger denied by Justice it is highly unlikely they would approve this merger.

Like others supporting the national media reform movement I was disappointed with the Justice Department and FCC’s decisions to allow previous mergers that also had potential anti competitive effects. Remember they approved Qwest Century Link and Comcast NBCU. I was disappointed with the FCC’s sell out on Network Neutrality rules of nondiscrimination and the Chairman’s decision to abandon his own Third Way approach for regulating broadband providers that involved reclassifying broadband as a TItle II  public utility and an advanced “telecommunications service”. I was upset by Congressional Democrats caving to the former Bush Cheney Administration in 2008 when they voted to give telecoms immunity for their participation in the  illegal warrantless wiretapping program conducted during the Bush Administration by the NSA. However, this is a historic and terrific decision by Justice ruling in favor of the public interest and competition. Justice has refused to allow AT&T to have a spectrum monopoly. I believe Internet, broadband, communications, spectrum and media policies from Washington D.C. should be designed not to just benefit big cable and telecommunications companies but should actually serve the public interest. If the merger between AT&T and T Mobil had been approved AT&T  the second largest carrier and Verizon Wireless the nation’s largest carrier would have a near duopoly of the wireless market.  So thanks Justice for standing up to Ma Bell and denying them a Ma Cell.

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