OTI Denounces FCC’s ‘Shameful’ Decision on T-Mobile/Sprint Merger

Today, a narrowly-divided Federal Communications Commission (FCC) approved T-Mobile’s acquisition of Sprint, along with a secretly-negotiated side deal with Dish Network. The FCC has refused to publicly disclose the order for months, despite repeated calls for the agency to allow the public to comment on it.

OTI strongly opposes the merger because it would eliminate competition in the wireless market, increase consumer prices, and jeopardize the FCC’s Lifeline program. T-Mobile’s unenforceable promises, upon which the FCC’s approval is founded, do not change these realities.

A federal judge is currently evaluating the complex T-Mobile/Sprint/Dish scheme, which OTI and others urged the court to reject last week. Meanwhile, Texas, New York, the District of Columbia, and 14 other states are suing to block the merger.

The following quote can be attributed to Joshua Stager, senior counsel at New America’s Open Technology Institute:

“This decision is a slap in the face to the American people. The Trump Administration is rubber-stamping a blatantly anticompetitive merger that should be illegal under any serious antitrust or public interest analysis. It will raise prices, kill jobs, and worsen the digital divide. The fact that Chairman Pai has kept this order hidden from the public underscores how shameful it is.

“The deeply flawed scheme to make Dish a new fourth competitor won’t work, leaving consumers stuck with fewer choices and higher costs. When markets consolidate from four to three competitors, they become hopelessly anticompetitive. The FCC is pushing the American wireless market over a critical tipping point.

“Thankfully, the states are stepping up where the federal government has failed. More than a dozen states, including Texas and New York, are suing to block this merger. This is the right call, and we support their case.”