T-Mobile tempo goes from waltz to tango at CPUC

by Steve Blum • , , , ,

Tango

T-Mobile’s request for rapid approval of its merger with Sprint and sale of assets to DISH got a staccato response from opponents at the California Public Utilities Commission, but the next step won’t necessarily follow that rhythm. The CPUC’s public advocates office and the Communications Workers of America – a major telecoms industry union – filed their objections yesterday, just three working days after T-Mobile’s motion was submitted.

The objections fall mainly into two categories: procedural and substantive. The procedural objections boil down to “this motion asks the commission to do something that is not provided for anywhere in the rules – to take ‘advisement’ of new facts, after the case has been submitted and the record closed”.

The substantive objections revolve around the sketchy details and uncertain outcome of the settlement that T-Mobile, Sprint and DISH reached with federal justice department. For the past year, the CPUC review has generated thousands of pages of legal argument and testimony about a deal that’s not exactly on the table anymore…

The proposed merger as set forth in this proceeding is solely between Sprint and T-Mobile; however, it appears that Dish Network now has a crucial role in the transaction; namely, to acquire some of Sprint’s assets in order to become a fourth major wireless carrier and allegedly alleviate antitrust concerns. Obviously, Dish’s role in this was not part of the Application because it had not occurred yet; thus, no party has had the opportunity to investigate or analyze the current proposal…

The Commission should consider whether the deal that is actually being proposed is in the public interest.

The standard process for reopening the record and allowing new developments, such as the agreement with DISH to (maybe) launch a competing nationwide mobile network, is lengthier and more contentious. It’s no surprise that T-Mobile, or anyone in their right mind, would want to avoid it. Whether they can or not is in the hands of the administrative law judge managing the case. There’s no particular timeline for him to make a decision.