Below are the first four paragraphs in
the Free State Foundation’s Opposition to Petitions to
Deny the proposed T-Mobile - UScellular transaction. A PDF of the complete
FCC filing, with footnotes, is here.
I. Introduction and Summary
This Opposition to Petitions to Deny is filed in the Commission’s review of the transfer control of spectrum licenses pursuant to the proposed acquisition of UScellular operations and assets by T-Mobile US, Inc. Consistent with its past practice, the Free State Foundation does not specifically endorse or oppose the proposed T-Mobile/UScellular merger but examines it in light of basic merger review and competition principles. This Opposition to Petitions to Deny also responds to arguments contained in petitions to deny that are unsupported by evidence or not transaction-specific.
The weight of evidence indicates that
the proposed T-Mobile/UScellular merger, if approved, would produce
pro-competitive benefits. The merger would benefit UScellular subscribers by
giving them access to 5G services with faster speeds and higher data capacity.
It also would expand fixed wireless access (FWA) services in UScellular's
service regions, especially in rural areas. Moreover, given the existing
competition in the traditional wireless marketplace, as well as in the broader
broadband marketplace in which T-Mobile and UScellular participate, the
transaction does not appear to pose any significant harm to competition or
consumers that would outweigh the likely positive benefits.
II. The Market’s Competitiveness Should Dictate the Commission’s Analysis
The proposed transaction should be analyzed in light of the competitive conditions of the wireless marketplace. Today’s “mobile telephony/broadband services” product market is characterized by strong competition among three nationwide mobile wireless providers – T-Mobile, AT&T, and Verizon, an emergent fourth nationwide provider in EchoStar, local wireless providers, and regional hybrid cellular-cable mobile virtual network operators (MVNOs) Xfinity Mobile and Spectrum Mobile. Wireless providers are rapidly expanding 5G networks and upgrading their bandwidth capacity and speeds to supply increasing consumer demands. Indeed, the “mobile telephony/broadband services” product market exists within a broader broadband marketplace that is characterized by convergence and cross-platform competition between traditional mobile wireless services and substitutable or potentially substitutable fixed wireless (FWA), cable, fiber, and satellite services.
Ongoing service capability improvements and competition are backed by strong annual private market investment of $30 billion in 2023 and a total of $190 billion since 2018. Given the pro-competitive conditions for wireless services, the Commission’s merger review should incorporate a forward-looking analysis. Static market indicators fail to capture the critical role of future investment and innovation in driving competition and benefitting consumers.
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