Instead of playing nice with the other kids, T-Mobile is asking for parental intervention as the California Public Utilities Commission reviews its proposed deal to takeover Sprint. Possibly afraid its document dumping and foot dragging tactics are going to backfire and cause even more delays at the CPUC, T-Mobile sent a joint letter to commissioner Clifford Rechtschaffen yesterday, telling him don’t tap the brakes, you need to step on the gas dude…
The Commission’s timely review will help ensure that Californians benefit from the broad range of benefits documented in the extensive evidence we have submitted to the Commission. Conversely, any action that could delay consummation of the merger would slow the build-out of New T-Mobile’s robust, 5G network in California, thereby delaying New T- Mobile’s ability to provide all consumers in California the benefits of that network—such as increased speeds and expanded coverage, lower prices, and a bona fide wireless alternative to traditional in-home broadband service.
The problem is that T-Mobile, which is walking point at the CPUC for both companies, keeps turning up the volume on both its claims of wonderfulness and the amount of paperwork its shovelling as it attempts to convince regulators that the deal won’t do more harm to consumers than good.
The FCC paused its review of the deal for at least three weeks, because T-Mobile’s latest filings “contain substantial new material and reach conclusions about the effects of the transaction that were not previously in the record”. The CPUC administrative law judge (ALJ) managing the case, Karl Bemesderfer, added four weeks to his review because T-Mobile similarly introduced thousands of pages of new evidence to shore up its arguments that its takeover of Sprint would benefit Californians, rather than killing a competitive market for mobile broadband services.
Rechtschaffen is the commissioner assigned to oversee the T-Mobile/Sprint review. It would be procedurally and politically dicey, to say the least, if he intervened. Similar pleas have been made in high profile telecoms mergers in the past to no apparent effect, particularly on Bemesderfer who rates as one of the keenest and most telecoms savvy ALJs at the commission.
Right now, he’s considering a request from the CPUC’s public advocates office to force T-Mobile to handover supporting documents that were requested weeks ago. T-Mobile’s response is expected tomorrow. We’ll find out whether they think a cooperative attitude will help speed up the process.