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T-Mobile US Data Roaming Push Countered by AT&T

October 27, 2014 Industry News, AT&T, T-mobile
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T Mobile Data RoamingAT&T is continuing its efforts to counter requests from T-Mobile that the Federal Communications Commission go ahead with clarifying the standard in its 2011 data roaming rule that was deemed “commercially reasonable.”

VP of federal regulatory at AT&T, Joan Marsh, recently noted that the roaming rates being paid to AT&T by T-Mobile have decreased by 70% in the past three years and they are in line with what T-Mobile claims that it is paying other carriers.

Marsh has also questioned T-Mobile’s build-out plans, noting that it has sufficient spectrum to cover areas where it claims it needs to roam on to AT&T Mobility’s network. She stated, “In these broad swaths of the country, T-Mobile holds [1.9 GHz] and [1.7/2.1 GHz] spectrum that it could use to provide broadband services. It instead has chosen to rely on roaming. In contrast, AT&T has built out its network in many of those same areas, and, notably, it did so with the same higher-frequency spectrum T-Mobile holds. There is no reason T-Mobile could not do the same.”

Marsh further stated, “In short, T-Mobile’s latest effort to manufacture a case for new data roaming regulations offers no reasoned basis for the commission to abandon the careful balance struck in the data roaming order. T-Mobile, like the rest of the industry, has shifted to LTE, and can choose among multiple LTE roaming partners, including new roaming hub arrangements like the kind that Sprint has entered into with 27 carriers covering [38 million potential customers].

AT&T has said that it remains committed to spending at least $9 billion in the government’s recently delayed 600 MHz incentive auction, provided that sufficient spectrum is made available for a nationwide 20 MHz footprint. The auction is reliant on what is known as a reverse-auction process whereby TV broadcasters will turn in spectrum holding in exchange for cash. However, the total amount of spectrum that will be made available for the telecommunications industry will not be known until the completion of the reverse-auction process.

In August, reports came to light stating that AT&T had agreed to government conditions that would enable the deal to move forward. Although specific terms were not detailed, it was said that the move would allow the acquisition to be approved as early as this month.

During February, Comcast announced $45 billion plans to acquire Time Warner Cable that would result in the combination of the country’s top two cable network providers, which would encompass almost half of the domestic market. It is thought that the deal would provide a way for Comcast to boost its offerings against those from telecom-based competitors who are keen on getting into the TV space like AT&T and Verizon.