FCC says it needs more time to review Sprint, T-Mobile merger
15 September, 2018, 01:51 | Author: Leah Owens
The FCC wrote a letter to Sprint and T-Mobile on Tuesday, stating that it was pausing the informal 180-day clock for reviewing mergers, as it needs more time to review the proposed deal. This is largely because it needs more time to review a revised network engineering model from the two companies.
The FCC says that its 180-day shot clock will remain paused until T-Mobile and Sprint have submitted all the documents that they intend to rely on and a "reasonable period of time" has passed for the FCC and third-party review.
Lunge and T-Mobile launched in April they'd agreed to an all-stock merger price $26 billion, with T-Mobile CEO John Legere to bewitch management of the mixed company, to be known as "Fresh T-Mobile". The companies announced the proposed deal in April, capping four years of on-and-off talks between the third- and fourth-largest US wireless carriers. "This new economic modeling will also require additional time for review".
T-Mobile and Sprint have "extended" a network engineering model that was originally submitted as a backup plan.
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An enlarged T-Mobile can quickly build a next-generation - so-called 5G - network giving more people access to speedy broadband, the companies told the FCC in June.
Further, in an August 29, 2018 exparte meeting, T-Mobile executives Mike Sievert and Peter Ewens described T-Mobile's reliance on a business model, titled "Build 9", which apparently provides the financial basis for the projected new network buildout. But after about 55 days into the process, the Commission has outlined a few reasons why it needs more time to review the merger. Similarly, a business model titled "Build 9" that was also submitted September 5 needs further review, the FCC said. "We are confident that this transaction is pro-competitive, good for the country and good for American consumers", the company said.
The FCC only obtained both the new engineering model and Build 9 on September 5.
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