WASHINGTON-A group whose members lease excess 2.5 GHz educational TV spectrum capacity to major wireless carriers asked the Federal Communications Commission to condition the proposed $35 billion merger between Sprint Corp. and Nextel Communications Inc. to prevent the newly formed company from effectively converting leases into permanent rights to the frequencies.
The ITFS/2.5 GHz Mobile Wireless Engineering & Development Alliance Inc. previously raised the lease issue in an FCC proceeding realigning the 2.5 GHz band to foster wireless broadband while protecting educational video services. The Boulder, Colo.-based non-profit represents some educational entities that hold 2.5 GHz spectrum licenses and provides assistance to the licensees with converting their operations to digital two-way mobile operations.
“However, we feel that this need [merger conditions] is especially acute in the context of a possible merger between Sprint and Nextel, due to those entities’ extensive spectrum holdings in the 2.5 GHz band and apparent strategy to extend their domination through perpetual-and secret-EBS [educational broadband service] leases, as well as license purchase options,” the ITFS/2.5 GHz group told the FCC in a new filing.
Consumer groups and others have raised concerns about Sprint’s and Nextel’s 2.5 GHz holdings, which combined would form a national footprint. Sprint and Nextel argue they would not have market power in the 2.5 GHz band.
Sprint declined to comment on the ITFS/2.5 GHz organization’s allegations.
Meantime, the four FCC commissioners are studying a staff proposal in favor of the wireless deal, which would make Sprint a stronger No. 3 wireless operator behind No. 2 Verizon Wireless and No. 1 Cingular Wireless L.L.C.
The FCC and Justice Department are expected to approve the Sprint-Nextel merger within the next few weeks.
Today, Sprint and Nextel shareholders gave a thumbs-up to the transaction.
