EchoStar and Communications Workers of America (CWA) have stepped up their opposition to T-Mobile's proposed $4.4 billion deal to acquire significant assets from regional carrier UScellular.
In a filing to the Federal Communications Commission (FCC) this week, Dish Network owner EchoStar stated that the deal would threaten its ability to compete in the market.
In May, T-Mobile announced it had agreed to scoop up UScellular's operations, including its customer base and around 30 percent of the company's wireless spectrum.
UScellular will retain ownership of its other spectrum plus its towers, with T-Mobile entering into a long-term arrangement to lease space on at least 2,100 additional towers being retained.
UScellular is one of the biggest regional providers in the US, outside of the three traditional big carriers (T-Mobile, Verizon, and AT&T).
The company, which has around 4.5 million customers and operates in 21 US states, agreed last month to sell a portion of its spectrum to Verizon for $1bn.
"T-Mobile is asking for the commission's blessing to further entrench its dominance over the wireless voice and broadband markets, making it harder for others (like EchoStar) to compete. The commission should deny this transaction, which threatens to substantially harm competition while offering only illusory public interest benefits," said EchoStar in the filing.
According to EchoStar, T-Mobile's planned acquisition would see it further grow its market share, while at the expense of EchoStar.
EchoStar also claims T-Mobile has "created barriers to meaningful competition," in the past five years. T-Mobile previously completed its merger with Sprint in 2020.
"EchoStar is committed to disrupting the US wireless market and fostering robust competition through the deployment of its innovative Open RAN network, which represents a significant investment in American infrastructure through new technology that offers increased efficiency, security, and flexibility. But T-Mobile’s proposed acquisition threatens to undermine EchoStar’s ability to compete effectively," EchoStar added.
EchoStar isn't alone in its objections, with union CWA, which represents thousands of AT&T and Verizon employees also slamming the deal this week.
"Just four years ago, T-Mobile secured immense market power when it acquired Sprint by making false promises about job creation and preserving competition. Instead, the company cut jobs, suppressed wages, and left workers afraid to speak out. Now, T-Mobile wants to continue its takeover of the industry by purchasing UScellular,” said CWA president Claude Cummings Jr.
“We have seen what mergers of this scale can mean for workers if they can’t protect themselves through union representation, and it’s not good. It’s up to regulators to require strong, enforceable conditions to ensure that workers and consumers don’t take a back seat to corporate profits. If not, we will see an industry-wide race to the bottom."
The Rural Wireless Association and Public Knowledge have also filed petitions to the FCC calling for the deal to be rejected.
Last month, the US Department of Justice (DoJ) planned to review T-Mobile's proposed $4.4 billion acquisition for a big chunk of UScellular's business.
In a filing to the Federal Communications Commission (FCC), the DoJ stated that it wants to do a review to determine if the transaction poses a threat to the country's national security.
Providing an update on the deal from last month, T-Mobile said the transaction is progressing and expects it to be completed next year. UScellular has previously told the FCC that the deal is essential to ensure the company's future.
