FCC OKs AT&T buy of Aloha, Democrats dismayed about process

The Federal Communications Commission approved AT&T Mobility’s $2.5 billion purchase of Aloha Partners L.P.’s 700 MHz properties, triggering an angry dissent from a Democratic member of the GOP-led telecom agency.
The deal, which is expected soon to get the Justice Department’s blessing, gives AT&T Mobility 12 megahertz of spectrum covering 196 million people in 281 markets – including the top 10 markets in the United States and 72 of the top 100 markets. The FCC is currently auctioning other wireless licenses in the 700 MHz band, having raised more than $18 billion in bids so far. AT&T is a bidder in the 700 MHz auction.
Commissioner Michael Copps complained that the FCC’s ruling included only a brief analysis of the competitive effects of the change in ownership. “Instead, we have a rush to judgment that seems hard to square with the FCC’s statutory duty to promote competition in the wireless marketplace and diverse ownership of spectrum licenses,” he stated. AT&T competes with three other national wireless carriers, as well as with regional and small operators.
The FCC’s other Democratic commissioner, Jonathan Adelstein, reluctantly agreed to vote with the majority to okay the AT&T-Aloha transaction, citing similar concerns about the process used to reach the final decision.
“I only concur because the order lacks both substance and analysis in its review of whether, on balance, the transaction serves the public’s interest,” said Adelstein. “We are required to do more than simply conclude that a transaction benefits the public and will not have an adverse effect on competition. I would have preferred to see a more thorough assessment weighing the potential public interest harms and benefits of this transaction and its impact on the mobile telephony market.”