T-Mobile to FCC: Give us a Do-Over and Verizon's Cable Spectrum Too

T-Mobile demanded last week that the FCC deny the Verizon-Cable spectrum license transfer, apparently so Deutsche Telecom/T-Mobile could get it at a deep FCC managed-market discount.

The FCC is not Deutsche Telecom/T-Mobile's personal do-over button that they can push and magically reset the marketplace to an earlier time more to their liking. All other players have made market-driven decisions and have to live with them, and so should Deutsche Telecom/T-Mobile. That's the essence of free-market competition, companies move forward or backward based on their own market-driven choices. It's not competition or a market, if those who don't like the outcome of their own market decisions, run to government for a do over and quasi-international bail-out.

Let's review how T-Mobile got to this point.

For years T-Mobile has been a seller of its spectrum; because its parent Deutsche Telecom has long wanted to exit the U.S. market because it requires more capital investment than they are willing or financially able to expend.

FreePress' Latest Net Neutrality Folly -- Pushing for Shareholder Votes

FreePress' latest net neutrality folly and political agitation is pushing the SEC to make shareholders from AT&T, Verizon and Sprint vote on inappropriate, ill-advised, and unwarranted proposed shareholder resolutions in favor of wireless net neutrality in the weeks ahead.

Let me count the ways this is a waste of time and abuse of process.

First, it inappropriately and destructively attempts to politicize non-political entities, by trying to force a public political position from non-political corporate entities, whose contractual and fiduciary responsibility to shareholders is to economically/financially grow the value and profitability of the corporation.

Second, the appropriate place to have political votes is in legitimate political processes, elections or representative votes or decisions by elected officials at the appropriate local, state, and Federal level, which enjoy the constitutional, political, and relevant authority and legitimacy to decide political issues in a meaningful, substantive and productive way.

Third, the operative authority here for shareholders, the companies' shareholder agreements, corporate charter, and bylaws, are legally grounded on a contractual agreement between the company and shareholder to protect and grow the shareholders investment in the company, not to promote extra-political positions that actually could endanger the underlying purpose of the shareholders agreements.

Evidence Google Doesn't Take Antitrust Enforcement Seriously

Two top Google executives responsible for Google's corporate acquisitions unwittingly made it clear recently that Google, as a corporate entity, does not take the risk of antitrust enforcement very seriously.

First, Marcella Butler, Google's Senior Director, Corporate Development, M&A Operations and Integration, ”who manages how new firms are integrated into Google" recently told Slate.com: “We do not slow down our integration efforts at all during that time” i.e. during a DOJ antitrust review of a major transaction.

Such a surprisingly blanket absolute statement from a Google insider who is intimately familiar with how Google actually operates during DOJ merger antitrust reviews, at a minimum raises concerns with antitrust authorities about Google's respect for, and compliance with, antitrust law.

Google's Rapidly Spreading Dominance -- A Picture is Worth a Thousand Words

To more easily understand how rapidly Google's dominance is spreading throughout the web ecosystem, please look at this one-page-graphic called "Google's Rapidly Spreading Dominance." As the old adage says, a picture is worth a thousand words.

This graphic is highly instructive because it indicates that naysayers, who are writing off Google+ as a viable competitor to Facebook, are doing so prematurely.

The FCC's Visible Hand Picked Job Losers in Blocking AT&T-T-Mobile

T-Mobile's announcement of 1,900 job layoffs is an unfortunate real world consequence of the FCC overreaching its authority, breaking precedent, and disregarding FCC procedure in releasing an unapproved and biased staff report, in order to politically block the AT&T-T-Mobile merger just a few months ago.

A pillar of the FCC's political justification for blocking the AT&T-T-Mobile merger was that FCC staff did not believe the companies' analysis of the effect on jobs with and without approval of the merger. The FCC rejected AT&T's commitment to bring 5,000 call center jobs back to the U.S., if the merger was approved. In rejecting the merger and its job creating commitments and analysis, the FCC helped cause these particular 1,900 call center jobs to be lost at T-Mobile. That's because the FCC staff, (who admit to not having no expertise in this area) claim to know better than an employer of over a quarter of a million people how new jobs are created in today's marketplace.

Verizon-Cable Hearing Exposes Weakness of Opposition

 

The Senate Judiciary Subcommittee hearing on the proposed Verizon-Cable spectrum sale flushed out the opposition's best arguments and evidence and they proved surprisingly weak and sparse.

Behind the façade of FreePress' trademark bumper-sticker bluster of "a competition crisis," "a creeping duopoly," and "spectrum warehousing," there was very little substance to back up their pejorative assertions.

FreePress' bogus duopoly deception is the core weakness of the opposition to this commercial agreement. To believe there is a Verizon-AT&T wireless duopoly, one has to:

Verizon-Cable Senate Hearing - Competitive Reality vs. FreePress Fiction

 

Hopefully, the March 21st Senate Judiciary Subcommittee oversight hearing on the Verizon-Cable spectrum transaction will be a fair hearing based on the competitive facts and the law, and is not allowed to be hijacked politically by FreePress' signature gamesmanship.

I. FreePress Fiction

It is disturbing that two of the three hearing witnesses opposing the Verizon-Cable agreement are from FreePress: Joel Kelsey, FreePress' Policy Advisor and Tim Wu, who was FreePress' Chairman just thirteen months ago and has been a longtime FreePress board member.

It is curious and troubling that the Senate Subcommittee specializing in "competition policy" would seek testimony from two anti-profit, anti-property-rights adherents who don't believe competition policy can work.

 

Google's Privacy Excuse Algorithm Team - a Satire

Memo: To All Google Spokespeople

From: Brandi Sparkles & the Privacy Excuse Algorithm Team (PEAT)

RE: The New Google Public Line on FTC/State/EU Privacy Investigations

Google has changed the company's public line concerning our inadvertent, unintentional, un-anticipatable, accidental, unexpected, unwitting, un-premeditated, unconscious, and totally innocent bypassing of Apple Safari browser's privacy protections, which was first reported by the Wall Street Journal February 19th, and which is now being investigated by the FTC, State Attorneys General, and the EU per the WSJ today.