AT&T Objects to Sprint-Clearwire Partnership
AT&T asked the FCC not to allow Sprint Nextel to combine its 2.5 GHz assets with Clearwire’s in a WiMAX partnership. AT&T said that the FCC should at least create a screen to judge the effects on competition of combining the spectrum holdings. The Rural Cellular Association also asked the FCC to reject the deal. Numerous educational broadcast service and broadband radio service licensees filed in support of Sprint and Clearwire.
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AT&T noted that the FCC’s spectrum “screen” doesn’t account for 2.5 GHz spectrum. “Because the spectrum screen previously applied by the FCC has not addressed BRS/EBS spectrum -- but it is clear from the applications that New Clearwire intends to compete with traditional mobile services using such spectrum -- AT&T files these comments to discuss appropriate revisions to the spectrum screen and the application of that screen to the New Clearwire deal,” the Bell said. “AT&T submits that it would defy logic and be entirely arbitrary to exclude BRS/EBS spectrum from the initial screen in light of the substantial progress in the BRS/EBS transition.”
AT&T used comments by officials from the companies to argue the significance of the transaction and the need for rigorous regulatory scrutiny: “The New Clearwire venture will hold a near monopoly in BRS/EBS spectrum and, in its own words, ‘will compete head-to-head against the soon-to-be-launched 4G offerings of Verizon Wireless and AT&T.'”
AT&T observed that the FCC does a detailed competitive analysis in reviewing markets affected by mergers of companies with 95 MHz or more of cellular, broadband PCS, SMR and 700 MHz spectrum. The new Clearwire partnership would have 112.5 MHz of EBS spectrum nationwide, AT&T said.
The Rural Cellular Association asked the FCC to deal with roaming and other matters before allowing further industry consolidation. The RCA is raising similar objections to Verizon Wireless’ takeover of Alltel.
Creation of landmark partnership would nearly coincide with the proposed elimination of Alltel’s nearly nationwide wireless network on its acquisition by Verizon Wireless, which would become the largest U.S. wireless carrier, the RCA said. “Under these unique circumstances there is a manifest need for the Commission to recognize the impact of both transactions upon consumers and act to promote carrier-to-carrier network interoperability, including automatic roaming for voice and data, notably for wireless broadband services.”
“We are pleased with the more than 100 supportive filings for our pending WiMAX transaction, which amplify the broad support and commendations the transaction has received since it was announced in early-May,” said Sprint spokesman Scott Sloat. “Through the combination of Clearwire and Sprint’s WiMAX businesses, the new independent company intends to build and operate the nation’s first nationwide true broadband mobile network that will increase competition in a consolidating industry.”