AT&T’s Proposed Purchase of T-Mobile Overshadows Data Roaming Debate
Advocacy for and against a proposed data roaming mandate has been relatively quiet in recent days, according to FCC officials and recent ex parte filings at the commission. FCC Chairman Julius Genachowski is slated to circulate the sunshine agenda on the April 7 meeting Thursday, cutting off further lobbying. The order appears likely to be approved by the commission, though commissioners Meredith Baker and Robert McDowell may dissent based on jurisdictional concerns, industry and FCC officials said.
Sign up for a free preview to unlock the rest of this article
If your job depends on informed compliance, you need International Trade Today. Delivered every business day and available any time online, only International Trade Today helps you stay current on the increasingly complex international trade regulatory environment.
The debate has been overshadowed by the AT&T/T-Mobile merger. T-Mobile was an aggressive advocate of data roaming before the deal was announced. AT&T was a key opponent in the past, but has been relatively quiet since the merger was announced March 20. One FCC official said AT&T’s purchase of T-Mobile makes approval of the order less significant. “The other side of the argument is that a mandate for data roaming is now moot given that T-Mobile was one of its strongest proponents,” the official said.
The FCC does not have the legal authority to mandate data roaming, attorneys for Verizon Wireless said in a call with aides to Baker, according to an ex parte filing. “The proposed data roaming requirement would constitute common carriage and is thus barred by Sections 332(c) and 153(51) of the Communications Act,” Verizon said.
Rural Cellular Association President Steve Berry spoke in recent days with Commissioner Robert McDowell and Genachowski advisor Rick Kaplan to urge approval, the group said in ex parte filings. “In light of the recent announcement that AT&T plans to acquire T-Mobile USA, mandatory data roaming has become even more vital to competitive carriers,” the filing said.
Sprint Nextel representatives met with Kaplan in support of a roaming mandate, the company said in a filing. Public Knowledge Legal Director Harold Feld said in a filing he defended the FCC’s authority to proceed with the order in meetings with various eighth floor advisors.
Berry told us Tuesday he’s still making calls at the commission and building support on the Hill. “Remember, we have been beating down the doors for months on this issue -- I talked with almost everyone at the CTIA show and many of my members met with the wireless bureau at CTIA … and most of the people have seen us multiple times.” Berry said he’s always concerned about votes and doesn’t take anything for granted. “It has helped that ATT is now trying to be a likable fellow for the next few months, but the tiger has not changed it stripes,” he said.
"CTIA is divided among its members,” Feld said Tuesday. “AT&T is not going to say anything. That leaves Verizon as the last company standing that would oppose the order. Those in favor of data roaming understand that this is the best they are going to do under Title III. From our conversations with some of the smaller carriers, the feeling is that this presents a workable compromise."
Meanwhile, in a second merger-related docket, RCA said the FCC should reject AT&T’s proposed purchase of 700 MHz spectrum from Qualcomm in light of the T-Mobile merger.
"AT&T is on a spectrum buying binge, including both this Qualcomm acquisition and the recent announcement that it will acquire T-Mobile,” Berry said in a statement. “These actions are further proof that AT&T is doing everything possible to strengthen its already dominant position in the wireless industry at the expense of competition.” Replies were due Monday in docket 11-18. RCA and others opposed the sale in the original comment round (CD March 15 p7).
"The limited public interest benefits of the proposed transaction are strongly outweighed by the many public interest harms that will result from allowing AT&T to exert its substantially increased market power, including its ability to use such power to prevent small and rural carriers from being able to realistically compete with AT&T through the denial of data roaming and locking up through exclusivity agreements of the handset models most desired by consumers,” the Rural Telecom Group said.
AT&T and Qualcomm fired back at critics of the deal in comments filed last week at the FCC. The deal will help ease the current spectrum crunch, they said. “Claims that the Commission should deny this transaction, or else impose burdensome conditions on the grant of approval, make no sense in light of these public benefits and the vigorous competition in the provision of mobile services,” the filing said.