FCC approves VZW-Alltel, Sprint-Clearwire, unlicensed use of TV white spaces: Verizon Wireless set to become the nation’s largest wireless carrier

The Federal Communications Commission today conditionally approved the Verizon Wireless-Alltel Communications L.L.C. and the Sprint Nextel-Clearwire Corp. mergers, while also voting to allow unlicensed devices to operate in vacant broadcast spectrum known as white spaces.
The three major wireless decisions, which were preceded by massive lobbying, controversy and substantial congressional input, closely followed proposals championed by FCC Chairman Kevin Martin. While Martin and his colleagues negotiated compromises on some issues, the decisions fell short of what some commissioners and wireless carriers wanted.
The FCC extended roaming obligations in the $28 billion Verizon Wireless-Alltel deal from two to four years. Small, rural and regional wireless carriers sought a seven-year roaming condition, and they have sought other rules to strengthen roaming.
“When Verizon announced its proposed acquisition of Alltel, Leap warned of the potential anti-competitive effects and harm to consumers if the commission allowed the merger to proceed without addressing roaming and other critical public policy issues,” stated Leap Wireless International Inc. “Leap recommended minimum safeguards to ensure that Verizon does not continue to engage in anti-competitive roaming practices. Based upon commissioners’ comments at today’s open meeting, it is unclear to what extent Leap’s views were taken into account by the majority of the commissioners. Leap believes that comprehensive roaming reform must be enacted, and the company will continue to vigorously pursue the elimination of the ‘in-market exception’ and to advocate the inclusion of data within the automatic roaming regulation.”
The FCC also required Verizon Wireless to divest an additional five mobile phone licenses, bringing to 105 the number of overlapping wireless assets that must be sold. Martin and Commissioner Jonathan Adelstein said it was important to move forward on the two wireless mergers in light of harsh economic conditions.
The FCC’s approval is the last major regulatory action necessary for consummation of the Verizon-Alltel merger, following the Justice Department’s recent approval. The combination of Verizon Wireless and Alltel will push AT&T Mobility from the nation’s No. 1 wireless provider position.
The FCC also imposed county-based E-911 location accuracy and universal service funding reform conditions on the Verizon Wireless-Alltel and Sprint Nextel-Clearwire transactions.
According to Reuters, Sprint Nextel scored DoJ approval in August.
White spaces pans, praises
The agency’s decision on TV white spaces reserves the valuable spectrum for unlicensed devices subject to safeguards to prevent interference to broadcasters, wireless microphone users and others. The wireless industry had lobbied for a licensing approach to TV white spaces.
Telecom and high-tech companies as well as public-interest groups applauded the FCC ruling, while broadcasters blasted the agency.
“Today’s vote ushers in a new era of wireless broadband innovation,” said Craig Mundie, chief research and strategy officer at Microsoft Corp. “Like other unlicensed facilities, which enabled popular technologies such as Wi-Fi and Bluetooth, white spaces will make possible new and creative solutions to a range of broadband connectivity challenges. For example, white-spaces radios can help rural communities to augment their broadband Internet access inexpensively. Today’s vote also makes possible new ways to connect people and devices to each other and to Internet-based services, helping boost American productivity. And it will create opportunities for American companies to remain at the forefront of technological innovation worldwide, helping to create jobs and economic growth.”
“The FCC has taken a significant step to usher in a new era of technology allowing for major investments in innovative wireless broadband, education and government/enterprise applications to spur economic development,” said Greg Brown, president and co-CEO of Motorola Inc. “Motorola looks forward to developing products to market that will help consumers realize the full potential of the TVWS including the opportunity to make broadband access, as well as other communication services, available to millions of underserved Americans.”
“The Federal Communications Commission today took a major step to foster innovation and create new opportunities for consumers,” stated the Public Interest Spectrum Coalition. “By allowing the white spaces between TV channels to be used for unlicensed services, the FCC put the public interest ahead of the special interests. The FCC decision has the potential to bring enormous benefits to all Americans, whether as a tool for broadband access or as an engine of innovation and job creation. It will move wireless services into the 21st century. . New wireless services will develop as a result of this decision that would not have been allowed to be realized otherwise. These new services will enrich the lives of Americans while not interfering with their traditional entertainment options.”
The broadcasting and wireless microphone sectors did not hide their disappointment with the FCC’s white-spaces decision.
“While we appreciate the FCC’s attempt to address significant issues raised by broadcasters and others, every American who values interference-free TV should be concerned by today’s commission vote,” stated the National Association of Broadcasters. “By moving the white-space vote forward, the commission appears to have bypassed meaningful public or peer review in a proceeding of grave importance to the future of television.”
“While not unexpected, today’s FCC decision will greatly complicate the lives of wireless microphone users across the United States and negatively affect tens of millions of Americans listening to live and broadcast events,” said Mark Brunner, Shure Inc.’s senior director for global public and industry relations. Shure makes wireless microphones. “In over four years of activity, including numerous written comments, technical submissions to and meetings with the FCC, Shure has highlighted that wireless microphones, monitor systems and intercoms are essential production tools in modern music, theater, broadcast, sports, corporate, hotel, convention, education and house of worship environments. Often supported by their representatives in Congress, these communities have voiced their concerns throughout this proceeding.”
The FCC did not vote on universal service fund and intercarrier compensation reforms, as Martin had previously hoped.