CWA: FCC 3-2 Vote Approving Anti-Competitive, Job Cutting T-Mobile/Sprint Merger Followed “Fundamentally Flawed Process”

Wednesday, October 16, 2019

Washington, D.C. - The following is a statement from Debbie Goldman, Research and Telecommunications Policy Director for the Communications Workers of America (CWA), reacting to the FCC’s official vote in favor of the T-Mobile/Sprint merger:

“The FCC 3-2 vote in favor of the anti-competitive, job cutting T-Mobile/Sprint merger followed a fundamentally flawed process, lacking in transparency and failing to adhere to existing Commission rules and precedent.

This transaction remains deeply harmful to consumers and workers. The merger will result in the loss of as many as 30,000 jobs and downward pressure on wireless workers’ wages. The companies’ unsubstantiated pledges and commitments are unenforceable and filled with loopholes. And through the divestiture deal with DISH, T-Mobile is creating its largest customer, not a true competitor in the marketplace.

Thankfully, the lawsuit from 17 state attorneys general stands on solid ground, with compelling facts and arguments on their side as they move closer to trial.”

As FCC Commissioner Jessica Rosenworcel wrote in an opinion column today explaining why she voted against the merger: “Shrinking the number of national providers from four to three will hurt consumers, harm competition, and eliminate thousands of jobs. In deciding to overlook these harms, the FCC and the Department of Justice have been wooed by a few unenforceable concessions and hollow promises from the two companies involved.”

Earlier this month, nine organizations including CWA filed a joint petition with the FCC calling on the Commission to pause its review of the proposed merger while issues related to Sprint’s alleged Lifeline fraud were investigated by the Commission. The joint petition called the merger review process “highly unusual” and urged the FCC to seek public comment on major changes to the transaction that have taken place since the conclusion of the formal comment period.

  • Read CWA’s Tunney Act comments filed with the U.S. Department of Justice (DoJ) Antitrust Division last week, analyzing why the proposed T-Mobile/Sprint remedy fails the public interest standard and calling on DoJ to withdraw its consent (click here for filing)

 

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