WASHINGTON—U.S. law enforcement and homeland security officials have given their blessing to Japan-based NTT DoCoMo Inc.’s proposed $72 million purchase of Guam Cellular & Paging Inc. and Guam Wireless Telephone Co. L.L.C., after parties agreed to certain conditions. The Department of Justice, FBI and Department of Homeland Security filed the security agreement with the Federal Communications Commission on Oct. 19. The deal provides a glimpse into the level of scrutiny likely to be given to future telecom deals involving foreign investments into or outright purchases of American telecom carriers in the post-9/11 world—including those pursued by companies of staunch allies.
“As the commission is aware, the agencies have taken the position that their ability to satisfy their obligations to protect the national security, enforce the laws, and preserve the safety of the public could be impaired by transactions in which foreign entities will own or operate a part of the U.S. telecommunications system, or in which foreign-located facilities will be used to provide domestic telecommunications services to U.S. customers,” the agencies told the FCC. “After discussions with representatives of DoCoMo, the agencies have concluded that the commitments set forth in the agreement will help ensure that the agencies and other entities with responsibility for enforcing the law, protecting the national security, and preserving public safety can proceed in a legal, secure and confidential manner to satisfy these responsibilities.”
In June, TeleGuam Holdings L.L.C.—which provides wireless service though its Pulse Mobile L.L.C. unit and also offers local and long-distance services—urged the FCC to reject the DoCoMo-Guam Cellular deal because it poses competitive problems, would create a new precedent on foreign ownership and could undermine national security.
Guam, a U.S. territory, is home to what is regarded as one of the most strategically important U.S. bases in the Pacific.
While the national security issue looms large, there are signs Guam has the potential to be a battleground for competing third-generation mobile phone technologies.
DoCoMo said it plans to improve the quality of Guam Wireless’ GSM network, adding GPRS capability to launch packet roaming services. DoCoMo also said it would introduce a W-CDMA network for third-generation wireless services utilizing frequencies of Guam Cellular—a CDMA carrier—in the future.
Late last month, the CDMA Development Group asked the FCC to thoroughly investigate roaming implications of the DoCoMo-Guam Cellular transaction.
