12/9 Joint Petition Asking FCC to Deny T-Mobile’s Request to Acquire US Cellular

The Open Technology Institute at New America, along with Public Knowledge, the Benton Institute For Broadband & Society, Access Humboldt, and the Institute For Local Self-Reliance, filed a petition to deny regarding T-Mobile US, Inc.’s proposed acquisition of United States Cellular Corporation on the grounds that the proposal is anti-competitive and contrary to the public interest. Pursuant to its authority under Sections 214 and 310(d) of the Communications Act, the Commission may deny an application for a transfer of control if it harms, or does not benefit, the public interest. The record reflects that the transfer of control between T-Mobile US and US Cellular will indeed harm the public interest.

It will result in the loss of the fifth largest marketplace competitor—which has a network covering approximately 10 percent of the country’s population—reallocate spectrum resources predominantly to the three top wireless carriers (and therefore make it nearly impossible for a fourth competitor to emerge in the market), and waste valuable funding secured for building out 5G networks. The record also fails to show verifiable and transaction-specific benefits to the public interest. For these reasons, the application should be denied.

Additionally, Petitioners urge the Commission to consider all applications involving the sale or lease of US Cellular’s spectrum together in order to ensure that spectrum is allocated fairly and efficiently. In the event that the transaction is approved, Petitioners urge the Commission to consider imposing conditions on the proposed transaction that will serve the public’s best interest, including cellphone unlocking to make it easier for consumers to change providers. Overall, the Commission must do what is best for the public interest in its review of this application and, accordingly, the Commission should deny this transaction as proposed.