T-Mobile US and the Competitive Carriers Association are coming out in opposition to AT&T’s attempted acquisition of two lower 700 MHz B-Block licenses. AT&T said the deal is “wholly uncontroversial,” but CCA and T-Mobile US argue the move does not have the public’s best interest in mind.
“These transactions, in addition to AT&T’s buying spree before the enhanced factor analysis was created, make for a dangerous case of further spectrum aggregation into the hands of one of the largest national carriers,” CCA President Steve Berry said.
T-Mobile US agrees, saying, “AT&T simply wants to grab more low-band spectrum to depress competition, reduce investment, and stifle competition.”
In a post on its Public Policy Blog, AT&T refutes the allegations.
“The more robust LTE network made possible by this transaction will improve spectral efficiency, increase network capacity and enable us to offer faster, higher quality services to our customers,” the carrier said.
The bare spectrum will allow AT&T to support a 10×10 megahertz LTE deployment in the 700 MHz band in the relevant markets. AT&T contends, “A contiguous 10×10 [megahertz] configuration is more spectrally efficient and has a greater throughput than a 5×5 [megahertz] deployment.”
In a petition to the FCC, the CCA invokes the Mobile Spectrum Holdings Report and Order, which it claims the FCC adopted to “help ensure that further concentration of such spectrum will not have adverse competitive effects either in particular local markets or on a broader regional or national level.”
Berry said the FCC’s enhanced factor analysis, which is meant to provide an “enhanced review,” is not being used properly in this case.
AT&T counters with the FCC’s Policies Regarding Mobile Spectrum Holdings, which states, “The acquisition of below 1-GHz spectrum resulting in holdings of approximately one-third or more of such spectrum will not preclude a conclusion that a proposed transaction, on balance, furthers the public interest.”
The FCC has yet to respond to the CCA’s letter. The CCA represents more than 100 competitive wireless carriers, including T-Mobile US.