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AT&T Announces $39B Deal To Acquire T-Mobile

WASHINGTON, March 21, 2011 – Nationwide wireless carrier, AT&T announced Sunday that it had finalized an agreement to acquire competitor T-Mobile from Deutsche Telekom for $39 billion in cash and stock.

The deal between the nation’s second- and fourth-largest carriers would likely create the largest nationwide wireless carrier, topping current leader, Verizon.

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WASHINGTON, March 21, 2011 – Nationwide wireless carrier, AT&T announced Sunday that it had finalized an agreement to acquire competitor T-Mobile from Deutsche Telekom for $39 billion in cash and stock.

The deal between the nation’s second- and fourth-largest carriers would likely create the largest nationwide wireless carrier, topping current leader, Verizon.

“This transaction represents a major commitment to strengthen and expand critical infrastructure for our nation’s future,” said Randall Stephenson, AT&T Chairman and CEO through a statement Sunday. “It will improve network quality, and it will bring advanced LTE capabilities to more than 294 million people. Mobile broadband networks drive economic opportunity everywhere, and they enable the expanding high-tech ecosystem that includes device makers, cloud and content providers, app developers, customers, and more.”

AT&T touted the projected benefits of the acquisition in its press release, from helping achieve President Obama’s high-speed wireless deployment goals to helping alleviate an impending spectrum crunch. Monday morning, however, is certain to bring industry and government questions regarding the transaction’s effect on competition in one of the nation’s most highly concentrated industries.

Rep. Anna Eshoo (D-CA), ranking member of the House Subcommittee on Communications and Technology, released a statement Sunday evening, portending competition questions that are certain to be asked in the coming weeks and months.

“Competition is essential to promoting a vibrant wireless market, where consumers have a choice in the innovative services and devices available to them,” said Eshoo. “As the FCC and DOJ begin their regulatory and antitrust review, I urge them to carefully examine the proposed transaction.”

Industry watchdog, Public Knowledge, also released a statement shortly after the announcement, condemning the consolidation from four major carriers in the market to three “unthinkable.”

“The fact that AT&T and T-Mobile would even think of such a combination shows how desperately the U.S. needs both strong network neutrality rules and a competition policy that requires dominant broadband providers to make their networks available to competitors,” said Gigi Sohn, president and co-founder of Public Knowledge.

Before the acquisition is finalized, the Federal Communications Commission and the Department of Justice will conduct a regulatory and antitrust review of the transaction. The FCC’s standard of review for whether to give the transaction the go-ahead will depend on whether it determines it is in the best interest of the public. The Commission has taken up to a year to pass on similar mergers.

Jonathan began his career as a journalist before turning his focus to law and policy. He is an attorney licensed in Texas and the District of Columbia and has worked previously as a political reporter, in political campaign communications and on Capitol Hill. He holds a B.A. in Journalism from the University of Washington and a J.D. from Villanova Law School, where he focused his studies on Internet and intellectual property law and policy. He lives in Washington, D.C., where he roots for Seattle sports teams and plays guitar in his free time.

FCC

FCC Announces Largest Approval Yet for Rural Digital Opportunity Fund: $1 Billion

The agency said Thursday it has approved $1 billion to 69 providers in 32 states.

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Photo illustration from the Pelican Institute

WASHINGTON, December 16, 2021 – The Federal Communications Commission announced its largest approval yet from the $9.2-billion Rural Digital Opportunity Fund, greenlighting on Thursday $1 billion from a reverse auction process that ended with award announcements in December but that the new-look agency has been scrutinizing in recent months.

The agency said in a press release that this fifth round of approvals includes 69 providers who are expected to serve 518,000 locations in 32 states over 10 years. Its previous round approved $700 million worth of applications to cover 26 states. Previous rounds approved $554 million for broadband in 19 states, $311 million in 36 states, and $163 million in 21 states.

The agency still has some way to approve the entirety of the fund, as it’s asked providers that were previously awarded RDOF money in December to revisit their applications to see if the areas they have bid for are not already served. So far, a growing list have defaulted on their respective areas, some saying it was newer FCC maps that showed them what they didn’t previously know. The agency said Thursday that about 5,000 census blocks have been cleared as a result of that process.

The FCC also said Thursday it saved $350 million from winning bidders that have either failed to get state certification or didn’t follow through on their applications. In one winning bidder’s case, the FCC said Thursday Hotwire violated the application rules by changing its ownership structure.

“This latest round of funding will open up even more opportunities to connect hundreds of thousands of Americans to high-speed, reliable broadband service,” said FCC Chairwoman Jessica Rosenworcel.  “Today’s actions reflect the hard work we’ve put in over the past year to ensure that applicants meet their obligations and follow our rules.  With thoughtful oversight, this program can direct funding to areas that need broadband and to providers who are qualified to do the job.”

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FCC

Local Government Advisors Concerned by Delay in Sohn Confirmation Process

They also believe Alan Davidson will be viewed more favorably to head the NTIA.

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Nominee for FCC Commissioner Gigi Sohn

WASHINGTON, December 14, 2021 – Local government advisors are concerned by delays in the confirmation process of Gigi Sohn, President Joe Biden’s nominee for the Federal Communications Commission, and what those delays will mean for broadband services in local communities.

At the moment, there are reportedly not enough votes from Democrats to confirm Sohn.

The panel of local advisors at a National Association of Telecommunications Officers and Advisors on Monday said the FCC would likely remain split 2-2 between Democrats and Republicans until at least February, when the panel says Sohn’s confirmation will probably pass the Senate.

Such a split would prevent the agency from making some major decisions that would ramp up programs to expand broadband access for Americans. For this reason, several civil society groups have asked the Senate for a swift confirmation process of Biden’s nominees.

The panel also said that Biden’s nominee to head the National Telecommunications and Information Association, Alan Davidson, will likely be reported favorably out of committee.

Logistical problems for the Affordable Connectivity Program

Panelists also spent significant time discussing what current regulatory agency efforts mean for connectivity.

The panel critiqued the FCC’s transition from the Emergency Broadband Benefit to the Affordable Connectivity Program provided for by the newly-passed Infrastructure Investment and Jobs Act to continue providing students with internet access for e-learning. The program provides monthly subsidies for connectivity and devices for eligible students.

This transition is planned to take place with the start of the 2022 new year, and the agency is fielding comments on how to transition.

The panel stated that because this transition takes place during the school year, it has the potential to strand students without connectivity services. Panelists noted that they have been trying to communicate these concerns to the FCC.

The FCC recently eliminated an enrollment freeze in the EBB that was planned to take place during the transition to the ACP.

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FCC

FCC Takes Stock of Telehealth Successes, But Acknowledges a Long Way to Go at Agency Event

Procedural hurdles lie ahead for the commission’s telehealth efforts.

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FCC Commissioner Brendan Carr

WASHINGTON, December 6, 2021 – Federal Communications Commissioner Brendan Carr and several leaders in healthcare said Monday the agency’s efforts to expand telehealth programs for Americans face procedural hurdles before Congress.

The cost of government telehealth expansion efforts is among key factors that create congressional hesitance to rubber stamp the FCC’s telehealth initiatives.

During panel discussions moderated by Carr at a commission event on Monday, experts also remarked that the commission’s efforts would require a good deal of regulatory flexibility that many members of Congress may not be willing to grant it.

Panel guest Deanna Larson, CEO of virtual health network Avera eCARE, testified before the Senate on the matter in October, urging Congress to extend or make permanent its regulatory flexibility toward telehealth.

The panels also spent time discussing the substantial success the FCC has had in expanding telehealth over the course of the coronavirus pandemic.

Experts emphasized accomplishments such as the employment of remote monitoring devices by physicians to physically examine patients when they cannot come into the office.

The panel stated that the move from fully in-person healthcare to telehealth can be compared to the significance of the move from “Blockbuster to Netflix,” referencing the at-home experience of the streaming platform.

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