AT&T and Verizon turn to regulators to fend off T-Mobile - Business Insider

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AT&T and Verizon filed complaints with the FCC alleging that T-Mobile's spectrum holdings violate the screen rule—but the FCC likely won't intervene

that the screen rule is supposed to be applied only when a company would hurt competition by further aggregating spectrum.

In this case, T-Mobile would likely benefit consumers by using its spectrum holdings to challenge the dominant positions AT&T and Verizon have enjoyed in the US wireless industry for decades. On T-Mobile's Q2 earnings call, CEO Mike Seivert the company's mid-band spectrum as integral to challenging Verizon and AT&T, noting, "It would be crazy not to leverage that capacity advantage to compete hard and grow top-line revenues through competition.

FCC Chairman Ajit Pai would have a hard time justifying the application of the screen rule on the grounds of fair competition, particularly considering that AT&T and Verizon held a dominant market position relative to T-Mobile and Sprint during previous spectrum auctions, and therefore were in a position to amass more mid-band spectrum.

The simple explanation for the current predicament is that AT&T and Verizon didn't prioritize mid-band spectrum as much as T-Mobile and Sprint—AT&T, for instance, spent $81 billion in 2018 to

 

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Is it not the same thing AT&T and Verizon did to T- mobile at their onset? What goes around comes around.

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