Regulators Probing T-Mobile Deal Ask for Data on Customer Gains

• May 02 2018
• Todd Shields, Scott Moritz

U.S. antitrust regulators probing T-Mobile US Inc.’s proposed purchase of Sprint Corp. have asked for information that could show where the wireless companies find new customers, a factor in deciding whether the tie-up may harm competition.

U.S. antitrust regulators probing T-Mobile US Inc.’s proposed purchase of Sprint Corp. have asked for information that could show where the wireless companies find new customers, a factor in deciding whether the tie-up may harm competition.

Scott Scheele, of the Justice Department’s antitrust division, in an April 30 letter to the Federal Communications Commission asked for data about customers taking their phone numbers to new carriers.

T-Mobile has gained nearly 11 million regular subscribers in three years to overtake Sprint as the third-largest U.S. wireless carrier, and has earned a reputation as a creative competitor willing to attract customers by giving away Netflix subscriptions.

Scheele’s request could help show where T-Mobile finds its customers, said Harold Feld, senior vice president at the policy group Public Knowledge, which opposes the merger saying it would lead to less competition and higher prices.

“If some large percentage came from Sprint, you’d say, okay those guys are
primary competitors with each other, so letting them merge is a bad idea," Feld said in an interview.

Scheele, the telecommunications and broadband section chief, also asked for information from FCC reports that show how assigned telephone number are being used by carriers. Such reports can also help show customer flow between carriers, Feld said.

The deal announced April 29 faces an in-depth investigation by the Justice Department over competition concerns, and some analysts are giving the transaction only 50-50 odds of passage. The transaction also needs approval from the FCC.

Operating as T-Mobile, the combined company would have about $74 billion in annual revenue and 70 million wireless subscribers. Verizon Communications Inc. is the largest U.S. carrier with $88 billion in 2017 wireless revenue and 111 million subscribers, and AT&T Inc. would have $71 billion in wireless revenue and 78 million regular subscribers.

An email requesting comment from the Justice Department’s antitrust division wasn’t immediately returned. Neil Grace, an FCC spokesman, declined to comment.