Filed a Petition for Declaratory Ruling to Permit Foreign Ownership in Excess of the Statutory Benchmark Under Section 310(B) of the Act.3 2
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UNITED STATES COURT OF APPEALS FOR THE DC CIRCUIT COMMUNICATIONS WORKERS OF AMERICA v. UNITED STATES OF AMERICA Case No. 19- and FEDERAL COMMUNICATIONS COMMISSION Respondents. PETITION FOR REVIEW Pursuant to Section 402(b)(6) of the Communications Act of 1934, as amended, 47 U.S.C. § 402(b)(6), and 28 U.S.C. §§ 2342(1) and 2344 ; and Federal Rules of Appellate Procedure 15, Communications Workers of America (“Petitioner”), hereby petitions for review of the attached Applications of T-Mobile US, Inc. and Sprint Corporation for Consent to Transfer Control of Licenses and Authorizations; Applications of American H Block Wireless L.L.C., DBSD Corp., Gamma Acquisition L.L.C., and Manifest Wireless L.L.C. for Extension of Time, Memorandum Opinion & Order, Declaratory Ruling, and Order of Proposed Modification, WT Docket No. 18-197, FCC 19-103 (rel. Nov. 5, 2019) (“Sprint/T- Mobile Order”). Venue is proper in this Court under 28 U.S.C. § 2343. Respondents are located in this judicial circuit. The Order exceeds the FCC’s statutory authority; is arbitrary and capricious and an abuse of discretion; violates federal law, including, but not limited to, the Constitution of the United States, the Administrative Procedure Act, and the Communications Act of 1934, as amended. Petitioners respectfully request that the Court grant this Petition, hold unlawful, vacate and set aside the Order, and provide such additional relief as the Court may deem proper. Respectfully submitted, /s/ Joseph Van Eaton Joseph Van Eaton Cheryl A. Leanza Best Best & Krieger LLP 2000 Pennsylvania Ave, N.W. Suite 5300 Washington, DC 20006 Phone: (202) 785-0600 Fax: (202) 785-1234 December 5 , 2019 2 CORPORATE DISCLOSURE STATEMENT Pursuant to the United States Court of Appeals for the DC Circuit Rule 26.1 and Federal Rule of Appellate Procedure 26.1Communications Workers of America respectfully states that it is a non-profit organization with no parent companies, subsidiaries or affiliates and neither has issued shares to the public. Respectfully submitted, /s/ Joseph Van Eaton Joseph Van Eaton Best Best & Krieger LLP December 5, 2019 3 EXHIBIT A 4 Federal Communications Commission FCC 19-103 Before the Federal Communications Commission Washington, D.C. 20554 In the Matter of ) ) Applications of T-Mobile US, Inc., and ) WT Docket No. 18-197 Sprint Corporation ) ) For Consent To Transfer Control of Licenses and ) Authorizations ) ) Applications of American H Block Wireless ) ULS File Nos. 0008741236, 0008741420, L.L.C., DBSD Corporation, Gamma Acquisition ) 0008741603, and 0008741789 et al. L.L.C., and Manifest Wireless L.L.C. for Extension ) of Time ) MEMORANDUM OPINION AND ORDER, DECLARATORY RULING, AND ORDER OF PROPOSED MODIFICATION Adopted: October 16, 2019 Released: November 5, 2019 By the Commission: Chairman Pai and Commissioners O’Rielly and Carr issuing separate statements; Commissioners Rosenworcel and Starks dissenting and issuing separate statements. TABLE OF CONTENTS Heading Paragraph # I. INTRODUCTION .................................................................................................................................. 1 II. BACKGROUND .................................................................................................................................. 14 A. Description of the Applicants ........................................................................................................ 14 B. Description of the Transaction ....................................................................................................... 16 C. Transaction Review Process .......................................................................................................... 20 D. New T-Mobile Commitments ........................................................................................................ 25 E. Department of Justice Review ....................................................................................................... 33 F. DISH Applications ......................................................................................................................... 37 III. STANDARD OF REVIEW AND PUBLIC INTEREST FRAMEWORK .......................................... 39 IV. QUALIFICATIONS OF THE APPLICANTS AND COMPLIANCE WITH COMMUNICATIONS ACT AND FCC RULES AND POLICIES .................................................... 43 A. Qualifications of the Applicants .................................................................................................... 43 B. Compliance with Communications Act and Commission Rules and Policies ............................... 47 C. Standing of Certain Petitioners ...................................................................................................... 48 V. POTENTIAL PUBLIC INTEREST HARMS: UNILATERAL AND COORDINATED EFFECTS ............................................................................................................................................. 53 A. Market Definitions and Market Participants .................................................................................. 55 1. Product Market ........................................................................................................................ 55 2. Geographic Market .................................................................................................................. 66 3. Input Market for Spectrum ...................................................................................................... 70 4. Market Participants .................................................................................................................. 73 B. Competitive Effects of the Proposed Transaction .......................................................................... 79 1. Characteristics of the Mobile Wireless Industry ..................................................................... 81 Federal Communications Commission FCC 19-103 2. Initial Screen............................................................................................................................ 87 a. Market Concentration ....................................................................................................... 89 b. Spectrum Concentration ................................................................................................... 94 (i) Application of Total Spectrum Screen ....................................................................... 95 (ii) Enhanced Factor Review .......................................................................................... 100 (iii) Puerto Rico ............................................................................................................... 103 (iv) 2.5 GHz Spectrum .................................................................................................... 107 3. Unilateral Effects ................................................................................................................... 111 a. Consumer Substitution .................................................................................................... 112 b. GUPPIs and CMCR ........................................................................................................ 129 c. Merger Simulation and Predicted Price Effects .............................................................. 137 4. Quality Benefits and Dynamic Competition ......................................................................... 164 5. Coordinated Effects ............................................................................................................... 178 6. Commitments to Address the Potential for Lost Price Competition ..................................... 189 a. Boost Mobile Divestiture ................................................................................................ 189 b. Pricing Commitment ....................................................................................................... 209 VI. POTENTIAL PUBLIC INTEREST BENEFITS OF INCREASED NETWORK DEPLOYMENT ................................................................................................................................. 214 A. Nationwide 5G Network .............................................................................................................. 215 B. Rural 5G Coverage ...................................................................................................................... 257 C. In-Home Broadband Service ........................................................................................................ 277 VII.OTHER POTENTIAL HARMS AND BENEFITS ........................................................................... 285 A. Wholesale Services ...................................................................................................................... 285 B. Roaming ....................................................................................................................................... 293 C. Non-Network Efficiencies ........................................................................................................... 299 D. Innovative Service Offerings ....................................................................................................... 308 E. Enterprise Market......................................................................................................................... 316 F. Employment ................................................................................................................................