FCC commissioners were not given a chance to vote on...
FCC commissioners were not given a chance to vote on an order approving the combination of T-Mobile and MetroPCS, released Tuesday (CD March 13 p1), but four of the five commissioners released statements after the fact that were generally supportive…
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of the transaction. The deal was approved by the Wireless Bureau. Commissioner Mignon Clyburn said she agrees the deal “would not likely result in competitive harm to wireless consumers” and should promote LTE. “Some commenters such as Communications Workers of America raised significant concerns with regard to whether, post- merger, the new company would pursue non-network synergies and efficiencies that could lead to significant job losses, a reduction in employment standards, and an adverse impact on customer service,” Clyburn said (http://fcc.us/Y9sx5S). “In this regard, T-Mobile and MetroPCS made a statement that they have no plans to move call centers offshore or to reduce employment levels at T-Mobile call centers. They also stated that, over the last six months, the company has hired more than 3,600 employees in its 17 domestic call centers, and plans to continue hiring in those call centers, increasing the number of overall U.S. positions, to support its customers. I hope that the new company, in fact, pursues a course that increases employment opportunities.” Commissioner Jessica Rosenworcel also stressed the importance of jobs. “I have expressed to the parties my concern that as they move ahead, American workers do not get left behind,” she said (http://bit.ly/14WriqA). “Major job losses are not in the public interest. The companies have pledged to me that they have no plans to close any domestic call centers, to move them offshore, to close any retail stores, or to reduce retail positions as a result of this deal. ... I expect that the company will keep its word and live up to these promises.” Commissioner Ajit Pai said he was pleased the order had been approved by the bureau. “When markets are competitive, consumers are better off when the government forbears from intervening and allows private parties to negotiate and enter into voluntary agreements,” he said (http://bit.ly/YaFzNg). “As I have said before, mutual consent implies mutual benefit, and it is accordingly in the public interest for freely-negotiated contracts to be allowed and enforced so long as third parties are not harmed.” Jeff Silva, analyst at Medley Global Advisors, said the merger presented a political problem for the administration. “T-Mobile/PCS presented a political quandary for the Obama administration, which again sided against organized labor in yet another review of a telecom transaction with potential implications for jobs,” he noted. “Pro-Obama labor backed the failed AT&T/T-Mobile merger, while opposing successful government approvals of Verizon/Cable and, now, T-Mobile/PCS.” The Justice Department’s Antitrust Division said in a news release it had also cleared the transaction. “After a thorough review of the proposed transaction, the Antitrust Division has determined that the combination of T-Mobile and MetroPCS is unlikely to harm consumers or substantially lessen competition and has closed its investigation,” DOJ said (http://1.usa.gov/16szdQ2).