FCC's Verizon, Alltel Review Prompts Questions to T-Mobile

The pending merger of Verizon Wireless and Alltel Corp. has prompted the Federal Communications Commission to take a renewed look at foreign-controlled assets in other wireless phone companies, a development that could impact T-Mobile USA. The FCC on Oct. 17 sent a letter to T-Mobile, which is owned by Deutsche Telekom AG, advising the company that regulators should have evaluated its 2001 acquisition by the German telephone giant under a 20% voting stock threshold. The merger was evaluated under a more lax standard. "The Commission strictly applies the 20% statutory benchmark of [the law], and has no discretion to waive it," an FCC letter to T-Mobile said. "Based on this ownership structure it appears that Deutsche Telekom, a foreign corporation, has a 30%, non-controlling interest in a common carrier license." The letter asked T-Mobile to respond within 30 days about how it can come into compliance.