FCC to Count Sprint's 2.5GHz Holdings In Spectrum Screens
The Federal Communications Commission plans to adjust the way it accounts for the spectrum holdings of companies when calculating spectrum screens. The government typically limits companies to owning one-third or less of the spectrum in any given market around the country. The FCC uses this screen to assess mergers and acquisitions. The FCC plans to reclassify 128.5MHz of airwaves that were previously reserved for religious and other groups so it can be counted amongst the airwaves owned by mobile network operators. Of the 128.5MHz, 101MHz is held by Sprint. The result of this reclassification will directly impact Sprint because its 2.5GHz spectrum holdings will be counted against it for the first time. According to The Wall Street Journal, the addition of its 2.5GHz holdings to its existing spectrum totals will put Sprint at the one-third mark or higher in many major markets around the country. This will directly impact Sprint's ability to acquire other companies, such as T-Mobile. The FCC plans to vote on the matter at a meeting scheduled for May 15.
Sprint Complains to FCC Over Proposed Spectrum Screen
Sprint submitted a proposal to the Federal Communications Commission this week in response to the FCC's suggested spectrum screen reforms. The FCC established spectrum screens to help it weigh how much spectrum is owned by wireless network operators in a given market.
Masayoshi Son Would Consider Selling Sprint Spectrum
SoftBank CEO and Sprint Chairman Masayoshi Son indicated he'd be willing to sell some of the company's 2.5GHz spectrum assets to keep Sprint funded. Sprint gained a massive amount of 2.5GHz spectrum holdings when it purchased Clearwire.
FCC Spells Out Spectrum Screen Policies
The Federal Communications Commission today adopted a Report and Order with respect to spectrum screens and how'll they'll be used in upcoming spectrum auctions and other spectrum transactions. Moving forward the FCC will stick to its one-third rule, meaning the FCC will analyze on a case-by-case basis transactions that might result in a wireless provider owning more than one-third of the available spectrum licenses in a given market.
T-Mobile Wants $1B Break-Up Fee If Sprint Deal Fails
T-Mobile and Sprint are weighing several big factors ahead of a potential merger between the two. To start, Deutsche Telekom, a two-thirds owner of T-Mobile, is demanding a break-up fee of at least $1 billion if the merger is shot down by U.S.
Verizon Pushing FCC to Reconsider Auction Rules
Verizon Communications recently met with Republican members of the Federal Communications Commission in an attempt to convince the agency to abandon its proposed rules for an upcoming auction. The FCC has scheduled a reverse auction for the middle of 2015 that will see television stations voluntarily give up their spectrum, which will then in turn be auctioned off to wireless network operators.