Todd Shields

Sprint is unable to recover from crippling losses and has told regulators its purchase by T-Mobile would set up a stronger competitor to wireless leaders AT&T and Verizon. Customers are fleeing the smallest of the big four US nationwide providers at an increasing rate, Sprint told the Federal Communications Commission in a Sept. 21 meeting. Revenue is dropping and the company can’t cut much more after eliminating about $10 billion in annual costs.

Washington officials once dazzled by the swashbuckling entrepreneurs of Silicon Valley are now openly questioning the freedom they’ve bestowed on Facebook, Twitter, and Google. Emboldened by a president who’s openly contemptuous of the companies -- despite his own reliance on Twitter -- and intelligence reports linking popular online sites to election interference, lawmakers from both parties grilled top tech executives this week about whether, and how, Washington should rein them in. 

Sinclair Broadcast Group’s bid to purchase Tribune Media hinges on spinning off TV stations to comply with US limits on broadcast ownership. Yet its proposals to sell stations from Pennsylvania to California are drawing fresh scrutiny as critics, including business rivals, say some of the transactions are designed to evade the ownership rules. In one case, two Texas stations are to be sold to a partner company that until recently was controlled by the estate of the mother of Sinclair’s controlling shareholders.

Federal Communications Commission Chairman Ajit Pai is said to be planning a vote in July on limits to how many TV stations a company can own, rules he has said are too restrictive and that could factor into Sinclair Broadcast Group’s planned purchase of Tribune Media Co. Apparently, Chairman Pai is poised to schedule a July 12 vote on altering rules that cap broadcasters’ reach at 39 percent of the national audience. A vote in July could head off a decision by the US Court of Appeals for the DC Circuit in Washington that is considering a challenge to part of the existing rules.

Asked at a news conference if he or his staff had had any conversations with representatives from AT&T while the company was paying Michael Cohen for insights into the new administration, including reportedly on net neutrality, President Donald Trump’s lawyer, now-Federal Communications Commission Chairman Ajit Pai said, "No." He later clarified that Michael Cohen had not come to him to open a door for AT&T. 

T-Mobile’s John Legere and Sprint’s Marcelo Claure met with Federal Communications Commission Chairman Ajit Pai to sell their $26.5 billion deal. Legere and Claure also met with FCC Commissioner Brendan Carr.

The Federal Communications Commission began moving almost $9 billion collected to subsidize phone and broadband service from a Bank of America account to what auditors call safer ground at the US Treasury. FCC Chairman Ajit Pai has begun shifting the Universal Service Fund money on advice from government auditors, who said keeping the money outside government coffers was risky, according to Mark Wigfield, an FCC spokesman. Auditors recommended moving the money “to better protect and manage this nearly $9 billion fund,” Wigfield said.

T-Mobile’s John Legere and Sprint’s Marcelo Claure went to the Federal Communications Commission to begin laying the groundwork for their proposed $26.5 billion merger. They met with FCC Commissioners Michael O'Rielly and Jessica Rosenworcel and laid out much the same case that the companies have presented in public. 

The Federal Communications Commission faced skeptical questioning from judges about a rule change that made way for Sinclair Broadcast Group’s proposed acquisition of Tribune Media, raising the possibility of turmoil for the $3.9 billion deal.  Judges at the US Court of Appeals for the DC Circuit, hearing a challenge April 20 to the change, questioned why the FCC had reinstated a rule allowing owners of some TV stations to count just part of their audience when tallying holdings against a national limit of 39 percent.

The decision to end network neutrality has to withstand a court challenge, and Democrats in Congress will do their utmost to overturn it. Regardless of the outcome, the fight marks Federal Communications Commission Chairman Ajit Pai as a brawler in bureaucrat’s guise. Says Kevin Werbach, a former FCC staffer who teaches at the University of Pennsylvania’s Wharton School: “He’s going through, pretty systematically, to reverse rules put in place during the Obama administration.”