Ranking Democrats on Senate and House Commerce Committees warned ...
Ranking Democrats on Senate and House Commerce Committees warned FCC Chmn. Powell that Deutsche Telekom (DT) was controlled by German govt. and was ineligible for U.S. telecom licenses as part of pending VoiceStream merger. Ranking Democrat Hollings (S.C.), who…
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repeatedly has voiced concerns about foreign ownership aspects of deal, and his House counterpart Dingell (Mich.) told Powell they “noted with interest” his desire to return agency to “a less activist agenda.” They wrote in letter sent March 6: “With the Commission’s upcoming decision on the DT-VoiceStream merger, the FCC will have a concrete opportunity to demonstrate this philosophy.” They cited recent press reports that DT Chmn. Ron Sommer faced mounting pressure, including from members of Germany’s parliament, to resign in face of company’s falling stock prices. Hollings and Dingell referred to comment by Germany Finance Ministry spokesman that agency was backing Sommer. They also cited congratulations from German Chancellor Gerhard Schroeder to Sommer on “setting up the company well both domestically and abroad.” Such “competing statements of concern and confidence” more typically are issued by private sector board members and not govt. officials, Hollings and Dingell told Powell. They also ticked off parts of merger record before FCC that they said pointed to German govt. control of DT -- govt. ownership stake, “large amount of debt” DT holds that is backed by govt., number of govt. employees working for DT who are statutorily protected under German law. “The Commission’s foreign participation order (FPO) was based on a Clinton Administration initiative that was neither submitted to, nor approved by, Congress,” Hollings and Dingell wrote. “To approve a transaction by relying on the FPO and the underlying executive agreement without congressional approval would be the height of agency activism.” Meanwhile, VoiceStream Vice Chmn. Donald Guthrie expressed confidence at Credit Suisse First Boston conference in N.Y. Wed. that merger would receive FCC approval around mid-April. “Chairman Powell has stressed the need to be timely,” he said. “We believe that that time frame is certainly a reasonable time frame.” Merger is on track to close in early June, with Guthrie saying he expected regulatory approvals before then.