FCC OKs Spectrum Deal in Gulf of Mexico
The FCC Wireless and International bureaus approved a complicated spectrum transaction involving AT&T, Tampnet and Broadpoint and spectrum in the Gulf of Mexico. Broadpoint holds four cellular licenses with 50 MHz of capacity covering the Gulf of Mexico Exclusive Zone…
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(GMEZ). Broadpoint proposed to assign to AT&T two of the licenses, which would provide 50 MHz of spectrum covering a partitioned area in the GMEZ extending 16 nautical miles from the coastline. Tampnet will lease back from AT&T 25 MHz of cellular spectrum in that portion of the Gulf and buy Broadpoint’s remaining two cellular licenses, which provide 50 MHz covering the rest of the GMEZ, along with two AWS-1 licenses also in the Gulf of Mexico and licenses for satellite earth stations primarily located in the gulf, the order said. The bureaus said they gave the deal enhanced scrutiny because of spectrum aggregation concerns. In the area covered, AT&T, post-transaction, would hold 108 MHz of spectrum in total and 68 MHz of below-1-GHz spectrum, the bureaus said. Tampnet would hold or lease 55 to 80 MHz including up to 50 MHz of below-1-GHz spectrum, in parts of the Gulf of Mexico. The bureaus said they weighed the deal and agreed it was in the public interest. “After carefully evaluating the likely competitive effects of both AT&T’s and Tampnet’s increased aggregation of below-1-GHz spectrum in the Gulf of Mexico, we find that the ability of rival service providers to offer a competitive response to any anticompetitive behavior on the part of AT&T or Tampnet is unlikely to be materially lessened,” the bureaus said. “Further, we find that the record provides general support for the Applicants’ claims of potential public interest benefits. Therefore, under our sliding scale approach, we find that the likelihood of public interest harms is low and the potential public interest benefits outweigh any harms.” The deal also required a clearance under the FCC's foreign ownership rules. Tampnet is a “direct, wholly-owned subsidiary of Tampnet AS, a Norwegian company,” the order noted.