Monday, July 29, 2019
Headlines Daily Digest
Justice Department Settles with T-Mobile and Sprint
Don't Miss:
DISH to Become National Facilities-based Wireless Carrier
Wireless















Television

Tariffs

Government & Communication


Elections




Security/Privacy






Internet/Broadband



Journalism


Content

Company News

Sample Category
Justice Department Settles with T-Mobile and Sprint in Their Proposed Merger by Requiring a Package of Divestitures to Dish

The Department of Justice announced that it and the Attorneys General for five states reached a settlement with T-Mobile and Sprint regarding their proposed merger. The settlement requires a substantial divestiture package in order to enable a viable facilities-based competitor to enter the market. Further, the settlement will facilitate the expeditious deployment of multiple high-quality 5G networks for the benefit of American consumers and entrepreneurs.
The Department’s Antitrust Division, along with the offices of five state Attorneys General (Plaintiff States), filed a civil antitrust lawsuit in the US District Court for the District of Columbia to block the proposed transaction. At the same time, the Department and the Plaintiff States filed a proposed settlement that, if approved by the court, would resolve the Department’s and the Plaintiff States’ competitive concerns. The participating state Attorneys General offices represent Nebraska, Kansas, Ohio, Oklahoma, and South Dakota.
Under the terms of the proposed settlement, T-Mobile and Sprint must divest Sprint’s prepaid business -- including Boost Mobile, Virgin Mobile, and Sprint prepaid -- to Dish Network, a Colorado-based satellite television provider. The proposed settlement also provides for the divestiture of certain spectrum assets to Dish. Additionally, T-Mobile and Sprint must make available to Dish at least 20,000 cell sites and hundreds of retail locations. T-Mobile must also provide Dish with robust access to the T-Mobile network for a period of seven years while Dish builds out its own 5G network. The Department and the Plaintiff States said that, without the divestiture, the proposed acquisition would eliminate competition between two of only four facilities-based suppliers of nationwide mobile wireless services. According to the complaint, T-Mobile and Sprint both operate mobile networks and offer nationwide coverage to consumers, and they are particularly close competitors to each other for the roughly 30% of retail subscribers who purchase prepaid mobile wireless service. The combination of T-Mobile and Sprint would eliminate head-to-head competition between the companies and threaten the benefits that customers have realized from that competition in the form of lower prices and better service.

DISH Network will enter the US wireless market as the fourth nationwide facilities-based network competitor. DISH has reached agreements with the Antitrust Division of the US Department of Justice, T-Mobile US, and Sprint to complete this transformative transaction. Additionally, DISH has committed to the Federal Communications Commission that DISH will deploy a facilities-based 5G broadband network capable of serving 70 percent of the U.S. population by June 2023, and has requested that its spectrum licenses be modified to reflect those commitments. DISH will:
- Acquire Sprint's prepaid businesses and customers, including Boost Mobile, Virgin Mobile and the Sprint-branded prepaid service.
- Acquire 14 MHz of Sprint's nationwide 800 MHz spectrum.
- Access the New T-Mobile network for seven years, including the ability to serve DISH customers seamlessly between T-Mobile's nationwide network and DISH's new independent 5G broadband network.

Charlie Ergen has long tried to muscle his way into the US wireless business. When his rivals had no other choice, the billionaire behind Dish Network finally got his way. John Legere, the chief executive of T-Mobile US, called Ergen in late May after it became clear T-Mobile’s proposed takeover of Sprint was in trouble. Ergen had been the most outspoken corporate critic of the proposed $26 billion deal—a merger that would leave the US with three giant cellular companies. But the Colorado maverick also ran one of the few firms with the airwaves and know-how to create a new wireless provider that would satisfy the Justice Department’s antitrust concerns.

Congresswoman Anna Eshoo (D-CA) and House Republican Whip Steve Scalise (R-LA) introduced the Modern Television Act of 2019, a bill to repeal outdated regulations of the 1992 Cable Act, including retransmission consent and compulsory copyright license, to increase competition in the TV marketplace and to better address perennial broadcast TV blackouts. The legislation:
- Extends the “Good Faith” negotiation requirements (that otherwise expire on December 31st) and applies these requirements to small- and medium-sized cable operator buying groups. This will allow smaller competitors to band together in negotiations for programming and lower costs for consumers. (Effective 90 days after enactment.)
- Protects consumers from experiencing broadcast blackouts when MVPDs and broadcasters fail to extend an agreement by requiring MVPDs carry a broadcast signal while the parties continue negotiations for up to 60 days. Parties are retroactively paid for their content aired during this time. (Effective 90 days after enactment.)
- Repeals retransmission consent, compulsory copyright licenses, and several other outdated statutory provisions and regulations. This would allow free-market contract negotiations to happen under traditional copyright law. (Effective 42 months after enactment.)
- Establishes a mechanism by which the FCC may, but is not required to, compel parties to seek “baseball-style” binding arbitration through a neutral third-party arbitrator, following an extended impasse or a finding of bad faith. Consumers are protected from blackouts that otherwise would have occurred, and copyright holders are paid for their content during this process. (Effective 42 months after enactment.)
- Preempts federal, state, and local authority to regulate rates of cable services. (Effective 42 months after enactment.)
- Requires the Government Accountability Office to report specific metrics about the impact of this Act on consumer and the marketplace every two years. Based on the totality of these metrics the FCC must determine if this Act has had a net positive, net negative, or indeterminate impact on consumers and the marketplace. If the FCC finds a net negative impact, it must recommend specific policies for Congress to improve the marketplace.
- Ensures consumers have access to local programming by retaining the ability of a local television broadcast station to require carriage on cable and satellite providers in their local market. (Effective immediately, no change in law.)

President Donald Trump promised to take “substantial reciprocal action” against France after the nation’s President Emmanuel Macron signed into law a tax on American tech giants. “France just put a digital tax on our great American technology companies,” President Trump said on Twitter. “If anybody taxes them, it should be their home Country, the USA. We will announce a substantial reciprocal action on Macron’s foolishness shortly. I’ve always said American wine is better than French wine!”
Following the president’s tweet, the White House released a more detailed response. “The United States is extremely disappointed by France’s decision to adopt a digital-services tax at the expense of US companies and workers,” said spokesman Judd Deere. “France’s unilateral measure appears to target innovative US technology firms that provide services in distinct sectors of the economy.” “The Trump administration has consistently stated that it will not sit idly by and tolerate discrimination against US-based firms,” Mr. Deere added. “The US Trade Representative has already launched a Section 301 investigation into France’s digital-services tax, and the administration is looking closely at all other policy tools.”
Selected Agencies Should Clearly Communicate Practices Associated with Identity Information in the Public Comment Process

Members of Congress asked the Government Accountability Office to review issues related to identity information associated with public comments on proposed rulemakings. This report examines (1) the identity information selected agencies collect through Regulations.gov and agency-specific comment websites, (2) the internal guidance selected agencies have related to the identity of commenters, (3) how selected agencies treat identity information collected during the public comment process, and (4) the extent to which selected agencies clearly communicate their practices associated with posting identity information collected during the public comment process.
While the public comment process allows interested parties to state their views about prospective rules, the lack of communication with the public about the way in which agencies treat identity information during the posting process, particularly for duplicate comments, may inhibit users’ meaningful participation in the rulemaking process. Without clearly communicating how comments and their associated identity information are presented in the data, public users could draw inaccurate conclusions about public comments during the rulemaking process, limiting their ability to participate in the rulemaking process.

The Federal Communications Commission's Office of Economics and Analytics and the Office of the Managing Director update the FCC’s Information Quality Guidelines as required by the Data Quality Act, with guidance from the Office of Management and Budget. The guidelines will provide guidance to staff and information to the public about the FCC’s policies and procedures. The purpose of these guidelines is to describe in detail the FCC’s policy and procedures for reviewing and substantiating the quality of information before it is disseminated to the public, and to describe the FCC’s administrative mechanisms allowing affected persons to seek and obtain, where appropriate, correction of information disseminated that does not comply with the OMB Guidelines.
Benton (www.benton.org) provides the only free, reliable, and non-partisan daily digest that curates and distributes news related to universal broadband, while connecting communications, democracy, and public interest issues. Posted Monday through Friday, this service provides updates on important industry developments, policy issues, and other related news events. While the summaries are factually accurate, their sometimes informal tone may not always represent the tone of the original articles. Headlines are compiled by Kevin Taglang (headlines AT benton DOT org) and Robbie McBeath (rmcbeath AT benton DOT org) — we welcome your comments.
© Benton Foundation 2019. Redistribution of this email publication — both internally and externally — is encouraged if it includes this message. For subscribe/unsubscribe info email: headlines AT benton DOT org
Kevin Taglang
Executive Editor, Communications-related Headlines
Benton Foundation
727 Chicago Avenue
Evanston, IL 60202
847-328-3049
headlines AT benton DOT org

The Benton Foundation All Rights Reserved © 2018


