President Trump Holds White House Meeting to Discuss EchoStar and FCC Review

News outlets have reported that President Donald Trump held a meeting at the White House with EchoStar Chairman Charlie Ergen and FCC Chairman Brendan Carr on June 12. Although we do not know for certain what was discussed at the White House meeting, it is a supremely safe bet that the conversation included the FCC's current review of EchoStar's compliance with deadlines for reaching wireless facilities construction milestones. Reports indicate the President rightly hopes to prevent a scenario in which a major U.S. company goes bankrupt. 

EchoStar previously acquired wireless spectrum licenses in conjunction with the T-Mobile/Sprint merger and settlement with the U.S. Department of Justice. It has invested billions in private capital to build out a nationwide 5G wireless network, which is available to 80% of Americans. EchoStar's network offers a fourth competitive nationwide facilities-based mobile wireless service, and its network is unique for its deployment of Open Radio Access Network (Open RAN) technology. 

 

Free State Foundation President Randolph May and I expressed our views regarding the FCC's review of EchoStar's compliance with buildout commitments in reply comments filed on June 6.

T-Mobile/UScellular Transaction Ripe for Agency Action

According to the FCC's website (see graphic below), the agency's review of the $4.4 billion T-Mobile/UScellular transaction has entered its final month. The record evidence overwhelmingly indicates that consumers, including but not limited to current UScellular customers, would be better off if this deal were approved. Therefore, action prior to the end of the 180-day shot clock is warranted.

In an Opposition to Petitions to Deny filed on January 8, 2025, FSF President Randolph May and Director of Policy Studies and Senior Fellow Seth Cooper expressed their view that the proposed transaction likely would produce pro-competitive benefits, benefits that would outweigh any potential harms. They also noted that arguments against the transaction generally lack supporting evidence and/or a specific nexus to the instant transaction.

T-Mobile and UScellular, GN Docket No. 24-286

Source: fcc.gov

As Mr. Cooper described in a post to the FSF Blog shortly after the parties filed their Public Interest Statement on September 13, 2025, that regulatory filing "presents a prima facie case that [the] proposed transaction … will bring public interest benefits that outweigh any potential competitive concerns."

Tangible benefits identified and documented include faster 5G mobile broadband speeds, higher data capacity, and greater availability of fixed wireless access (FWA) home broadband service, especially in rural areas.

Potential harms, meanwhile, are unlikely given the robust competition that exists in the mobile broadband marketplace, a landscape documented by the Free State Foundation in June 2024 comments to the FCC for its 2024 Communications Marketplace Competition Report. Consumers can choose between three nationwide providers, EchoStar's upstart network that is available to over 70 percent of the U.S. population, mobile virtual network operators (MVNOs) such as Spectrum Mobile and Xfinity Mobile, and regional providers.

Potential harms also would be mitigated by the specific nature of this transaction – in particular, the relative disparity in their respective subscriber bases (126 million versus 4.5 million), the limited extent to which the parties directly compete (as Mr. Cooper pointed out in a February 2025 blog post, the parties "apparently do not have an overlapping competitive presence in thirty-seven percent (37%) of the Cellular Marketing Areas (CMAs) implicated by the proposed deal"), and the fact that T-Mobile sets "its pricing and service terms on a nationwide basis."

In addition, approval of this transaction would enable the efficient and timely reallocation of spectrum to its highest and best use while we wait for Congress to renew the Commission's auction authority – a priority Senate Commerce Committee Chairman Ted Cruz (R-TX) discussed in his Keynote Address at the Free State Foundation's recent Seventeenth Annual Policy Conference (video available here).

T-Mobile/UScellular Transaction Deserves a Timely Decision by the FCC

 On January 28, the public comment period closed in the FCC's review proceeding for the T-Mobile/UScellular transaction. The weight of available evidence indicates that the proposed acquisition by T-Mobile of 30% of UScellular's spectrum and its subscribers most likely would bring public benefits by making high-speed 5G mobile services and residential fixed wireless services available to more Americans. Given UScellular's small market share, the transaction is unlikely to cause any significant harm to competition or consumers. 

The FCC should decide on the proposed T-Mobile/UScellular deal well before the agency's 180-day shot clock for completing transaction reviews expires. The shot clock was intended to be the outside date by which agency reviews of transactions involving substantial concerns are to be finished – not the much shorter timeline in which most reviews, which do not raise substantial concerns, ought to be decided.

 

The backdrop to the proposed T-Mobile/UScellular transaction is today's "mobile telephony/broadband services" product market that is characterized by strong competition among nationwide mobile providers T-Mobile, AT&T, and Verizon, emergent nationwide provider EchoStar, and regional cable mobile virtual network operators (MVNOs) Xfinity Mobile and Spectrum Mobile. Importantly, the "mobile telephony/broadband services" exist in a broader converged broadband marketplace wherein traditional mobile wireless face cross-platform competition from potentially substitutable fixed wireless (FWA), cable, fiber, and satellite services.  

 

To briefly recap the terms of the proposed transaction, T-Mobile would acquire UScellular's wireless operations, subscribers, and about 30% of its spectrum licenses for $4.4 billion. UScellular subscribers would gain access to T-Mobile's faster and more capacious 5G mobile wireless network. 

 

T-Mobile and UScellular apparently do not have an overlapping competitive presence in thirty-seven percent (37%) of the Cellular Marketing Areas (CMAs) implicated by the proposed deal. Also, on average, T-Mobile’s spectrum holdings are reportedly lower in UScellular's geographic territory than in other areas. Post-transaction, consumers in those overlap areas would still have a choice of three nationwide mobile wireless providers, and many would also have a choice among EchoStar’s 5G service and/or a cable MVNO.  

 

Moreover, petitions and replies filed in opposition to T-Mobile/UScellular do not raise any transaction-specific competitive concerns that would justify agency delay in making a decision.  Concerns about spectrum concentration expressed variously by CCIA, EchoStar, and RWA appear overstated because T-Mobile would only acquire 30% of UScellular's spectrum, and providers AT&T, Verizon, and EchoStar all have vast valuable spectrum holdings. Indeed, it appears the agency's spectrum screen for closer analytical scrutiny is not triggered in any CMA subject to the deal. 

 

Furthermore, claims or concerns raised by petitions and replies in the proceeding about data-roaming arrangements and employment-related matters do not appear to be tied to this specific transaction. Post-transaction, any aggrieved mobile provider can file complaints with the Commission for adjudication under the agency’s data roaming rules. Insofar as employment-related concerns are raised, they are more suitable for review by agencies such as the National Labor Relations Board.

 

Based on a review of the available record in light of competition principles, the proposed deal appears to offer public benefits without any harms that would outweigh them. The Commission should promptly act on the T-Mobile/UScellular proposal, without having the review delayed by matters that are unrelated to the transaction. 

 

P.S. On January 8, the Free State Foundation filed its Opposition to Petitions to Deny in the FCC's review proceeding for T-Mobile/UScellular.

FWA Make Further Strides, More Spectrum and Cell Sites Needed

In today's communications market, cross-platform competition is exemplified by fixed wireless access (FWA) broadband services. In the third quarter of 2024, consumer adoption of both FWA continued strong. 

According to a report in Light Reading, in the third quarter of 2024, Verizon had 2.67 million FWA subscribers – 1.64 million residences and 1.03 million for businesses. And a report at SDxCentral indicates that AT&T Air gained about 135,000 subscribers to its Internet Air FWA service, for a total of about 500,000. T-Mobile reported gaining 541,000 subscribers to its Home 5G FWA service during the quarter, bringing its reported total to over 6 million.  

 

Further growth is expected. It is reported in Fierce Network that Verizon plans to expand its C-band spectrum to 70% of its planned footprint by the end of this year and to double its FWA footprint to 90 million homes and businesses by 2028. Also, it's reported in Light Reading that New Street Research has predicted T-Mobile will add 1.45 million FWA subscribers next year, Verizon will add 1.3 million, and AT&T will add about 550,000. SDxCentral reported that T-Mobile has a goal of serving 12 million FWA subscribers by the end of 2028, and Verizon has a goal of serving 9 million by 2028. 

 

For the FCC, particularly under its prospective new membership in the second Trump Administration, increasing access to spectrum and ensuring streamlined permitting processes for constructing wireless infrastructure will be keys to realizing the future potential of FWA as a high-quality service and competitive choice for residential broadband subscribers in America. 

 

In July 2024 public comments to the FCC for its forthcoming Communications Marketplace Competition Report, Free State Foundation President May and I wrote:

To further promote competition, innovation, and investment in the broadband marketplace, the Commission should work proactively to make more spectrum available for commercial use and by removing regulatory barriers to broadband deployment… There is particularly strong demand for additional mid-band spectrum. The Commission ought to prioritize the lower 3.1-3.45 GHz band for study and prompt repurposing… Although proposals for repurposing different bands are at different stages of development and each faces unique challenges, the Commission should advance every proposal for spectrum that may realistically be suitable for commercial uses – whether on a licensed or unlicensed basis. A larger spectrum supply will enable more competitors to serve more Americans with next-gen services. 

For now, there is no spectrum in the pipeline for commercial services. A priority for the incoming Trump Administration will be to replenish that authority and restore the FCC's authority to conduct spectrum license auctions. Meanwhile, as indicated by an article in Fierce Networks, network densification – including constructing additional cell towers and other infrastructure – may be one way to expand network capacity while mid-band spectrum remains scarce. 

T-Mobile/UScellular Transaction Likely to Benefit Wireless 5G Consumers

On September 13, T-Mobile filed a public interest statement with the FCC in support of its proposed transaction with US Cellular. If approved, the T-Mobile/UScellular transaction likely would produce pro-competitive results. The merger would benefit UScellular subscribers by giving them access to a 5G mobile wireless network with faster speeds and higher data capacity. It also would enhance residential broadband competition by expanding consumer access in UScellular's service regions, especially in rural areas. On its face, the proposed combination does not appear to pose any significant competitive harm. The Commission should conduct a timely review of the T-Mobile/UScellular transaction and issue its decision within the agency’s 180-day shot clock.

The proposed T-Mobile/UScellular deal reportedly would result in T-Mobile acquiring UScellular's wireless operations, subscribers, and about 30% of its spectrum licenses for $4.4 billion. UScellular is a multi-regional wireless provider that serves about 4.5 million subscribers – or about 1% of the nation’s mobile wireless services market. Its subscribership has been declining in recent years. Strong competition from cable hybrid wireless mobile virtual network operators (MVNOs) Spectrum Mobile and Xfinity Mobile partly account for US Cellular's declines. Moreover, UScellular has lagged behind AT&T, T-Mobile, and Verizon – the three major nationwide mobile wireless providers in 5G network deployment.

Revenue reductions resulting from subscriber losses, as well as the burdens of servicing $2.9 billion in debts, are limiting its resources for future network investment. If UScellular were to continue operating as a standalone mobile provider, its competitiveness would probably diminish further.

T-Mobile's public interest statement presents a prima facie case that its proposed transaction with UScellular will bring public interest benefits that outweigh any potential competitive concerns. Today's dynamic wireless market provides the analytical context for the proposed T-Mobile/UScellular deal. As explained in the Free State Foundation’s June 2024 public comments to the FCC for its forthcoming 2024 Communications Marketplace Competition Report, there is effective competition among the mobile wireless segment of the broadband market. In 2022 and 2023, the three nationwide wireless providers significantly upgraded and expanded their 5G network coverage. Additionally, aspiring national provider EchoStar (which recently acquired DISH Network) announced in March of this year that its 5G network covers over 70% of the U.S. population. The large footprints of Xfinity Mobile and Spectrum Mobile also support competitive 5G wireless services to at least 16 million subscribers and counting.

Moreover, the T-Mobile/UScellular transaction is unlikely to reduce wireless competition. T-Mobile faces little challenge from UScellular due to its small market share, with a footprint that spans only about 10% of the nation's geographic territory. T-Mobile is the second-largest wireless provider, with nearly 126 million total subscriptions versus UScellular's 4.5 million. T-Mobile makes its pricing and service terms on a nationwide basis, and thus UScellular's presence in a given area is unlikely to impact T-Mobile's price offerings. According to the public interest statement, T-Mobile and UScellular do not have an overlapping competitive presence in only about 37% of the Cellular Marketing Areas (CMAs) that are implicated by the proposed transaction.* If the it is approved, most consumers would continue to have choices among nationwide providers T-Mobile, Verizon, and AT&T, and many consumers also would have choices among DISH Wireless and a cable wireless MVNO. 

Furthermore, T-Mobile's analysis indicates that the proposed acquisition of 30% of UScellular's spectrum portfolio would not trigger the FCC's spectrum screen analytical trigger in any cellular marketing area. This presumes that T-Mobile completes planned sales of certain spectrum licenses that it currently holds in the 800 MHz and 3.45 GHz bands. 

Under the terms of the proposed T-Mobile/UScellular transaction, UScellular subscribers would have the option of staying on their existing rate plans. T-Mobile estimates that at least some of UScellular's subscribers would experience a price decrease by changing to comparable plans offered by T-Mobile. If correct, and given existing competition in the market, the deal would not likely cause rates to increase for consumers. 

The transfer of spectrum licenses contemplated in the proposed T-Mobile/UScellular transaction triggers the FCC's review of the transaction under its public interest standard. The Commission's merger review process includes opportunity for public comments that could shed added light on the proposed deal. The agency will undertake its examination of the representations made in the public interest statement – including information redacted from public view – and it will more closely examine the potential effects in local markets. However, at this stage of the proceeding, the T-Mobile/UScellular transaction appears to be a strong candidate for approval. 

Importantly, the Commission should complete its transaction review within the agency's informal 180-day shot clock. Delays in completing reviews can accelerate subscriber losses in small providers and have other harmful impacts.

(*12/19/2024 - a correction has been made in this post to the percentage of CMAs in which the parties have an overlapping presence)

(*02/04/2025 - further edits have been made to more accurately refer to the transaction as an acquisition of assets and not a merger between the parties)

FWA and Cable MVNO Services Make More Gains in Early 2024

The reality of cross-platform competition in today's communications marketplace is evidenced by the continued growth of fixed wireless access (FWA) residential broadband services as well as cable wireless mobile virtual network operator (MVNO) services.

On April 25, T-Mobile announced that it added 405,000 FWA subscribers during the first quarter of 2024, bringing its overall FWA subscriber total to over 5 million. Verizon announced that it added 203,000 FWA subscribers during the first quarter, resulting in a total of 3.4 million. AT&T announced that it added 110,000 subscribers to its new FWA service during the first quarter, increasing its total FWA subscriber count to more than 200,000. 

It is reported that T-Mobile set an initial target of having 7-to-8 million FWA subscribers in 2025 and that Verizon has set a target of 4-to-5 million FWA subscribers for next year. Additionally, New Street Research reportedly has predicted that AT&T will be adding approximately 180,000 FWA subscribers per quarter during the remainder of 2024, with potential increases over the quarters that follow. It is reported that there is some difference in outlook among market analysts such as TD Cowen and Moffett Nathanson regarding how much competitive pressure FWA will put on cable broadband in the near term. 

 

Meanwhile, cable broadband providers continue attracting new subscribers to their MVNO offerings. According to an April 26 announcement by Charter Communications, its Spectrum Mobile service added 486,000 subscribers during the first quarter of 2024. At quarter's end, Spectrum Mobile had 8.3 million subscribers. Additionally, Comcast announced that it had gained 289,000 subscribers to Xfinity Mobile, increasing its subscriber total to 6.9 million. 

 

The proper response by the FCC to the growth of FWA and cable MVNO in the communications market should be to emphasize market competition as a safeguard to consumer welfare rather than stringent government regulation. Unfortunately, the Commission took the latter approach on April 25 when it voted 3-2 to subject broadband Internet access services to public utility regulation. The Free State Foundation filed comments and reply comments in the FCC’s Safeguarding and Securing the Open Internet proceeding that opposed public utility regulation. 

Cable Wireless MVNOs Set for Further Growth in 2024

Cable wireless mobile virtual network operators (MVNOs) are important component of the effectively competitive wireless communications market. The two largest cable MVNO services – Comcast's Xfinity Mobile and Charter's Spectrum Mobile – have been in operation only a handful of years. Although their subscribership is far below the three major mobile wireless providers T-Mobile, Verizon, and AT&T, cable MVNOs have made modest but steady gains ever since they entered into the wireless market. According to recent reports, Xfinity Mobile finished 2023 with 6.58 million subscribers and Spectrum Mobile finished with 7.8 million.  

There remains plenty of room for growth in 2024, as cable MVNOs continue to explore using their own licensed CBRS spectrum to carry mobile wireless traffic and reduce reliance on leased spectrum. According to an article published on January 10 of this year in LightReading, Cox Mobile also is looking to expand its wireless offerings in 2024, and it is now conducting tests on licensed CBRS spectrum for fixed wireless access (FWA) applications. As noted in a February 2023 article in FierceWireless, Cox paid $200 million for CBRS spectrum licensees auctioned by the FCC. Cox Communications is not publicly traded and doesn't publish subscriber numbers. 

Opensignal Reports Reflect the Reality of Mobile Wireless Innovation and Competition

 On July 5, Opensignal released the latest iterations of its 5G Experience Report as well as its Mobile Network Experience Report. The reports were based on data for mid-March to mid-June 2023.

Opensignal's 5G Experience Report found that Verizon Wireless had the best upload speed of 18.5 Mbps, up nearly 15% from mid-September to mid-December 2022. It also awarded Verizon three "5G experiential awards" for gaming, voice app, and live video. According to the report, T-Mobile had the highest download speeds at 195.9 Mbps. Meanwhile, T-Mobile also had the highest 5G availability, with Opensignal finding that 5G-capable users were connected to 5G 57.9% of the time that those users were on T-Mobile's network.

Opensignal's Mobile Network Experience Report – which includes 4G LTE wireless networks – found that T-Mobile had the best download speeds at 97.1 Mbps, up 17.6 Mbps or 22.1% compared to the prior data collection period of mid-September to mid-December 2022. T-Mobile also had the highest upload speeds, at 11.7 Mbps. And the report found that AT&T had the best network service availability – with a score of 99.4% – based on proportion of time that wireless users have a network connection. 

 

Regardless of which provider came out on top in the categories considered by Opensignal, what is important for consumer welfare in the U.S. is that speed, experience performance, and coverage continue to increase rather than remain static. Also, the report reflects the prevalence of effective competition in the wireless broadband market. A decade ago, the FCC was sometimes reluctant – unjustifiably in the view of Free State Foundation President Randolph May and I – to recognize that the wireless services market was "effectively competitive." But the mobile wireless market in 2023 surely is effectively competitive. Aside from the three major nationwide providers, the report observes that US Cellular will be rolling out its mid-band 5G network across ten states. And the market presence of cable-hybrid mobile virtual network operators (cable MVNOs) Xfinity Mobile and Spectrum Mobile give consumers additional competitive choices. 

 

To promote future improvements in speed, experience performance, and coverage for 5G wireless networks, Congress should restore the FCC's authority to conduct competitive bid spectrum license auctions. More spectrum is needed to support commercial mobile wireless services, particularly mid-band spectrum. Congress should pass H.R. 3565, the Spectrum Auction Reauthorization Act of 2023. If it becomes law, H.R. 3565 would revive the Commission's spectrum license auction authority and it also would direct the NTIA to conduct feasibility studies for making spectrum in the 4 GHz and 7/8 GHz bands available for commercial use, either on a shared or exclusive basis. 

Cable Mobile Wireless MVNOs Off to Strong Start in 2023

Comcast's Xfinity Mobile and Charter's Spectrum Mobile released their latest quarterly number for subscriber additions, both of which are summed up nicely in a May 1 FierceWireless article by Linda Hardesty:

Comcast added 355,000 net wireless lines in its first quarter 2023. During the same quarter, Charter added a whopping 686,000 Spectrum Mobile lines — an indication that its 12-month Spectrum One bundled promotion is paying off in garnering new subscribers.

Comcast now counts 5.7 million lines for its mobile virtual network operator (MVNO) service, while Charter counts 6 million total lines.

A May 10 FierceWireless article by the same author also calls attention to Spectrum Mobile’s sharing of Wi-Fi networks with Xfinity mobile as well as other Wi-Fi network partners. It is reported that about 85% of Spectrum Mobile’s data traffic is carried on Wi-Fi and the remainder is carried on Verizon Wireless’s cellular network pursuant to an MVNO agreement. And Spectrum Mobile is now beginning to put some of Charter’s CBRS (3.5 GHz) spectrum into use in order to reduce further its dependency on third party-cellular networks.

Although cable wireless MVNO subscribership is still small compared to that of mobile cellular wireless providers such as AT&T, T-Mobile, Verizon, C-Spire, and US Cellular, cable wireless MVNOs offer consumers a strong facilities-based competitive choice for mobile wireless broadband services. The continued growth of cable MVNOs also is a testament to private innovation and investment as well as the importance of making more spectrum available for commercial uses, both on a licensed and on an unlicensed basis. 

 

The competitive state of the broadband marketplace is the subject of my Perspectives from FSF Scholars from January of this year: "The 2022 Communications Marketplace Report: Timely FCC Action Could Accelerate Next-Gen Broadband Deployment."

Cable Mobile Wireless MVNOs Set Record With New Subscribers

On October 27 and 28, Comcast and Charter Communications each released their third quarter results for 2022. Both Comcast's Xfinity Mobile and Charter's Spectrum Mobile posted record numbers of net subscriber additions for their cable mobile virtual network operator (MVNO) wireless services. Comcast reported 330,000 wireless net subscriber additions during the third quarter, bringing Xfinity Mobile's total subscribership to 4.95 million. And this last week Xfinity Mobile announced that it has surpassed 5 million subscribers. Meanwhile, Charter reported 396,000 net subscriber additions, bringing the total number of Spectrum Mobile subscriber lines up to 4.7 million. 

Cable MVNO services – which include Altice – combine cable network facilities, including Wi-Fi hot spots, with spectrum leased from Verizon Wireless. This hybrid model enables cable MVNOs to serve subscribers outside of their respective traditional cable video geographic footprints. As described in the Free State Foundation's July 2022 comments to the FCC for its forthcoming 2022 Communications Marketplace Report, these mobile wireless offerings by cable MVNOs are an increasingly important source of intermodal competition, giving consumers an attractively-priced wireless alternative to mobile wireless carriers. Cable MVNO wireless offerings include 5G wireless, and they also are offered to consumers in bundles with fixed broadband as well as with cable video. 

As observed in my May 2 blog post, cable wireless MVNOs are continuing to pursue strategies for offloading mobile wireless traffic onto their own licensed spectrum in select geographic areas, creating cost savings from reduced reliance on leased spectrum. The future prospects for cable MVNOs appear to remain strong, and American consumers stand to benefit from their innovative and competitive offerings. 

DISH Network Reports Progress on its Nationwide 5G Buildout

On July 14, DISH Network submitted to the FCC its "5G Buildout Status Report." The report summarizes DISH's progress in building out its 5G network capabilities and offerings as part of its plan to become a nationwide wireless provider. 

Pursuant to the T-Mobile/Sprint merger and legal settlement, DISH acquired Sprint's Boost Mobile brand as well as spectrum licenses, along with buildout obligations. DISH is operating Boost as a mobile virtual network operator (MVNO) and simultaneously deploying a standalone 5G network. A 2020 FCC order requires DISH to follow through on commitments it made to offer 5G broadband services to at least 20% of the U.S. population and deploy a core network for its spectrum licenses in certain bands. 

According to DISH's 5G Buildout Status Report:

DISH is pleased to certify that, as of June 14, 2022, we offer 5G Broadband Service to 72,769,696 people in the United States. This coverage equals approximately 22 percent of the total U.S. population according to the 2020 U.S. Census with respect to DISH’s AWS-4 and AWS H Block licenses; DISH covers more than 25 percent of the population in those markets where DISH holds a Lower 700 MHz E Block license. (Emphasis in the original.)

According to DISH, its 5G service offerings became available to more than 120 cities by June 14, 2022. Its service interconnects with third party networks for 4G and 5G data roaming when out of DISH's footprint. 

Given all the unforeseen obstacles DISH has faced stemming from government-imposed lockdowns, labor shortages, microchip shortages, and supply chain problems, DISH's apparent progress is commendable. And DISH's ongoing efforts to deploy a nationwide standalone 5G network are another indicator of the competitive state of the broadband marketplace. For more on the competitiveness of the broadband services market, check out the comments that the Free State Foundation filed in July for the FCC's 2022 Communications Marketplace Report proceeding. 

T-Mobile Announces Closing of its 5G-Accelerating Merger with Sprint

Today, T-Mobile US announced the closing of its 5G-accelerating merger with Sprint. The New T-Mobile touts that, over the next 6 years, its network capacity will surge 14 times its current capacity, its average 5G speeds will be 15 times faster than its current LTE speeds, and its 5G network will cover 99% of the U.S. population. T-Mobile expects to make $40 billion in network investments over the next three years, and it plans to cover 90% of rural Americans with high-speed 5G services. 

In public comments and reply comments filed with the FCC and in other publications, including blogs, Free State Foundation scholars have described the pro-innovation, pro-investment, and ultimately pro-consumer benefits of the T-Mobile/Sprint merger. As we explained in those publications, the merger's closing will allow for a more rapid deployment of a nationwide 5G network that will pose a potent competitive challenge to AT&T and Verizon. More recently, T-Mobile's resounding victory in U.S. District Court over certain state attorney's general who challenged the merger on antitrust grounds was the subject of my Perspectives from FSF Scholars paper, "Court Affirms T-Mobile/Sprint Merger Will Speed 5G Deployment." 

Congratulations to T-Mobile on the closing of its merger and to its new CEO Mike Sievert. American consumers are now set for a big boost on 5G and a more innovative and competitive wireless market.

P.S. T-Mobile's 5G Fact Sheet for March 2020 can be found here.

The Exceptional Wireless Market

My Perspectives from FSF Scholars paper, "Court Affirms T-Mobile/Sprint Merger Will Speed 5G Deployment: California PUC Should Act Without Further Delay," was published today, March 4. It reviews the U.S. District Court's decision rejecting antitrust claims brought by certain state Attorneys General. As I point out in my paper, the California Public Utilities Commission should stop delaying, end its review, and allow the New T-Mobile to bring 5G and other benefits to consumers. 

Importantly, the District Court characterized the wireless market's innovative and competitive conditions as "exceptional." The Infogram that accompanies my Perspectives paper provides a partial snapshot of today's dynamic wireless market. On some Web browsers, the Infogram may be better viewed here.) 

FSF President Randolph May on U.S. District Court's Decision in T-Mobile/Sprint Merger Case

Free State Foundation President Randolph May issued the following statement regarding the decision by U.S. District Court Judge Victor Marrero rejecting certain states' suit to block the T-Mobile/Sprint merger:

"I'm pleased that Judge Marrero has denied the attempt of a minority of states to second-guess the considered decisions of the Department of Justice and the FCC to allow the T-Mobile/Sprint merger to be consummated. In comments before the FCC and before the District Court, I explained that, all things considered, the merger was likely to increase competition and overall consumer welfare not only in today’s wireless marketplace but in the broader telecommunications marketplace as well.

The District Court properly recognized that the states bore the burden of persuasion of showing that the proposed merger would substantially lessen competition in the market for retail mobile wireless telecommunications services and that they failed to carry this evidentiary burden. Especially important is the court's recognition of the 'complexity and dynamism’ of the wireless market. Indeed, the court properly acknowledged that 'the intensely competitive and rapidly changing environment in which complex and dynamic markets operate' rendered unlikely, in the real world of the wireless market as opposed to the one conjured up in theoretical models, that the anticompetitive business strategies and market effects that the states predicted would occur.

Now that the District Court has ruled, my hope is that the states will forbear from further litigation and that the California Public Utilities Commission will quickly act on the merger. It's time to let the competitive and dynamic marketplace that Judge Marrero identified work to enhance consumer welfare."   

The 2020 Communications Market at a Glance

My Perspectives from FSF Scholars paper, "The Communications Market at 2020: The Competitiveness of Video, Mobile, and Fixed Broadband," was published on January 30. Drawing on reports by industry, market analysts, and government agencies, my Perspectives paper showed that the digital communications market is robust and dynamic, with American consumers benefitting from next-generation technology deployments, new service offerings, and competitive prices. Indeed, available data indicates that, over the last two years, competitive conditions across video, mobile, satellite, and other digital communications service sectors have remained strong and, in many instances, improved. Below is an Infogram that offers a quick glance at competitive trends in the communications services market. (For desktop computers, the Infographic may be best viewed when opened and zoomed in a new window.)

State AGs Should End the T-Mobile/Sprint Lawsuit and Make Way for 5G

In late November, Texas and Nevada became the two latest states to withdraw from the antitrust lawsuit challenging the T-Mobile/Sprint merger. The case is thin on the merits, and the FCC's order approving the merger recognizes the benefits that the combined T-Mobile/Sprint's nationwide 5G network will provide consumers. Now that several states have joined the U.S. Department of Justice's proposed settlement regarding T-Mobile/Sprint, the remaining State Attorneys General should withdraw their lawsuit. 

The U.S. is in a tight race to 5G with China, and every opportunity for advancing 5G services at home should be pursued. Analysts such as Accenture Strategies project that 5G networks will provide average speeds at least ten times faster than 4G LTE networks and provide peak speeds perhaps 100 times faster. Advanced 5G networks will enable smart-city applications, as well as precision agriculture, industrial, and other uses. Importantly, the T-Mobile/Sprint merger will fast-track nationwide 5G coverage. In its November 2019 order approving T-Mobile/Sprint, the FCC found that the merger "will enable deployment of a more robust, nationwide 5G network than either standalone company could deploy on its own." 

Due to the consumer welfare benefits of more rapid and widespread 5G rollout, the T-Mobile/Sprint merger is well positioned to succeed in court against the remaining State AGs. Although the State AGs' take the position that T-Mobile/Sprint merger isn't necessary for 5G deployment in the U.S., that position amounts to little more than state government lawyers' second-guessing of the investment-backed business judgment of wireless carriers in a highly competitive market. As the FCC's order approving the merger recognized: "Sprint has not widely deployed its 2.5 GHz spectrum assets and our technical analysis predicts that on a standalone basis it would fail to cover nearly half of the country with 5G services on its 2.5 GHz spectrum, even assuming it has the financial ability to reach its previously planned deployment level." The Free State Foundation's reply comments in the merger proceeding as well as a May 2019 blog by Free State Foundation President Randolph May identify Sprint's significant financial debt as well as its streak of annual revenue declines dating back to 2013. 

Moreover, the State AGs' amended complaint allegation that the merger would substantially lessen competition rests on a largely static and unduly narrow picture of today's dynamic mobile market. It downplays the increased competition that the New T-Mobile will pose to current market leaders AT&T and Verizon. Additionally, the State AGs' complaint downplays competition from regional and local wireless providers, as well as competition from entrants Charter and Comcast. As of the third quarter of 2019, those two hybrid/MVNO providers served nearly 800,000 and nearly 1.8 million subscribers, respectively, with continued subscriber increases widely expected. DISH Network also has plans in the works to launch a nationwide mobile wireless network. And DISH's acquisition of Sprint's Boost prepaid brand makes it even more difficult for the State AG's to show that the merger would harm the prepaid market segment. 

Texas and Nevada are not the only states that have withdrawn from the State AGs' antitrust lawsuit against T-Mobile/Sprint. Colorado and Mississippi withdrew in October 2019. Ten states have instead joined with the Justice Department in a proposed settlement with T-Mobile and Sprint.

Now it's time for the remaining 14 State AGs should end their lawsuit and make way for 5G.

Cable Wireless Service Entrants Poised to Increase Market's Competitiveness

Yesterday, Free State Foundation President Randolph May and I filed public comments with the U.S. Department of Justice regarding its proposed settlement for the T-Mobile/Sprint merger. Our comments addressed the dynamic communications market context of the proposed merger, including existing and potential competition to wireless carriers: 

Wireless market entry by Comcast and Charter Communications using hybrid Wi- Fi/cellular mobile wireless networks further diminish the likelihood of significant price increases or other anti-competitive conduct post-merger. Traditional cable operators are established providers of bundled voice, video, and data services. They are well suited to provide competitive mobile wireless services by leveraging their existing broadband network capacity and nationwide deployment of Wi-Fi hotspots and leasing network capacity for out-of-area voice and data transmission. As of the second quarter of 2019, Xfinity Mobile reportedly served 1.6 million subscribers and Spectrum Mobile reportedly served 518,000 subscribers. Those subscriber numbers are widely expected to increase. 

Close attention ought to be paid to future subscriber numbers for both cable wireless entrants. But there are other indications that these new entrants will further increase the market's competitiveness for mobile wireless services. According to reports, Xfinity Mobile and Spectrum Mobile are both increasing mobile data traffic offloads from leased Verizon network capacity onto their cable Wi-Fi networks. This competitive strategy reduces their lease payments. Also, both Xfinity Mobile and Spectrum Mobile reportedly have plans in the works to offer 5G wireless network services in future. And the largest multi-regional wireless carrier has reportedly acknowledged publicly competitive pressures by cable wireless entrants. 

(H/T to LightReading's Mike Dano for his incisive reporting and analysis.) 

Wireless Market Entrants Gaining Subscribers in First Half of 2019

In public comments by the Free State Foundation in the T-Mobile/Sprint merger proceeding, FSF President Randolph May and I explained that "recent wireless market entry by Comcast and Charter and potential entry from other entities [] provides choices for consumers as well as competitive checks against anticompetitive conduct in the market." Our comments continued:

Comcast launched its Xfinity Mobile service in April 2017. The service for mobile wireless voice calling, texting, and mobile data relies on Comcast’s network capacity – including 18 million Xfinity Wi-Fi hot spots – in combination with network capacity leased from Verizon Wireless for out-of-area voice and data transmission. Xfinity Mobile enrolled 577,000 subscribers through the first quarter of 2018. Analysts have predicted new subscriber numbers will continue climbing. It is reported, for instance, that New Street Research expects Comcast’s new enrollments to sharply increase during the second half of 2018 and that Xfinity Mobile subscribership could reach 2 million connections within the near future. Meanwhile, Charter has announced the introduction of a similar hybrid Wi-Fi/cellular mobile wireless service called Spectrum Mobile. 

On July 25, 2019, Comcast reported that its Xfinity Mobile service had nearly 1.6 million wireless subscriber lines at the end of the second quarter of this year.  And on July 26, Charter reported significant subscriber growth during the second quarter of this year, with Charter serving 518,000 mobile lines by the quarter's end. These subscriber numbers point to both the present reality and potential for cable hybrid Wi-Fi/Cellular mobile wireless services to provide consumers with competitive service choices.

EU Commission Approves T-Mobile-Tele2 Merger in the Netherlands

No doubt that in analyzing market impacts and competitive concerns, every proposed merger is different. The analysis is necessarily fact-intensive, or should be. Unfortunately, there are some who generally fall back on well-worn mantras, such as "big is bad," or in the case of the wireless market, "less than four facilities-based competitors" is unacceptable.

With this in mind, I find the EU Commission's approval of T-Mobile NL's acquisition of Tele2 NL very interesting. EU Commissioner Margrethe Vestager, cdertainly no slouch when it comes to antitrust enforcement, said: "Access to affordable and good quality mobile telecom services is essential in a modern society.  After thoroughly analysing the specific role of T-Mobile NL and the smaller Tele2 NL in the Dutch retail mobile market, our investigation found that the proposed acquisition would not significantly change the prices or quality of mobile services for Dutch consumers".

Key facts: The merger involved the third and fourth largest wireless operators in the Dutch retail market. After the merger, the combined company would have approximately a 25% market share. The EU Commission certainly didn't accept the notion, accepted in some quarters as almost religious dogma, that a national wireless market must have at least four facilities-based carriers in order to be effectively competitive.

Now, back in the states, T-Mobile's proposed merger with Sprint would combine the third and fourth largest carriers. After the merger, their combined share of the facilities-based wireless market would be approximately 30%, still trailing either of the two largest U.S. providers, Verizon and AT&T, in market share. 

Also, noteworthy, turning back complaints from mobile virtual network operators that they would be disadvantaged, the EU declared: "[T]he investigation showed that any potential change in conditions for virtual mobile network operators due to the proposed merger would not have a serious impact on the level of competition in the Dutch mobile telecoms market."

Again, I am not saying, of course, that the EU's decision should dictate the outcome of the FCC and the Department of Justice T-Mobile-Sprint transaction reviews. As I said at the outset, the analysis of each merger is fact-intensive.

I am just saying…that the EU Commission decision is worth considering.

P.S. For much more regarding the context in which the proposed T-Mobile/Sprint merger should be evaluated by the U. S. authorities, see the Free State Foundation's comments and reply comments filed in the FCC's transaction review proceeding.

Verizon Now Offers 5G Residential Broadband in Four U.S. Cities

On October 1, 2018, Verizon launched 5G residential broadband access in Houston, Indianapolis, Los Angeles, and Sacramento. For only $50 a month for existing Verizon customers and $70 a month for non-existing Verizon customers, consumers in these four cities are able to access speeds of 300 Mbps and peak speeds of up to 1 Gbps.

Verizon is the first major carrier to launch a 5G network, but there is a lot of competition between wireless providers. It is only a matter of time before the 5G revolution expands to more U.S. cities and providers offer mobile capabilities for consumers on the go.