Top Ten Flaws in FCC’s AT&T/T-Mobile Competition Analysis

An article by Navarrow    View Comments

I’ve been saying for some time now that there are critical items that the FCC is ignoring in their competition analysis of the ATT/T-Mobile merger. I recently came across an Article on Forbes.com that gives a great summary of some of those flows. You can read the article here and I’ve listed the flaws below:

1. Totally ignored the Internet’s impact on wireless competition.
2. Totally ignored international competitive comparisons that repudiate its conclusion.
3. Assumed away all existing wireless competition that does not support its conclusion.
4. Totally ignored the financial/investment facts of Deutsch Telecom, T-Mobile’s parent.
5. Totally ignored the competitive impact of the FCC-described “looming spectrum crisis.”
6. Overplayed the maverick impact of T-Mobile by ignoring Sprint’s maverick incentives.
7. Turned a blind eye to the fundamental high-capital intensity of wireless competition.
8. Silent about Open Internet presumption that competition can’t protect consumers.
9. Totally misunderstood where the real market power resides in wireless devices.
10. The proposed Verizon-Cable spectrum sale and cross-marketing arrangement blows up the staff analysis’ central assumption that Verizon and AT&T will not compete fiercely going forward.

There are more but this a good top ten. As you read all the media and commentary. It’s important to think back this reasons and at least as yourself the question why?