While 14 big telecom companies have backed the Biden administration's call to extend the Affordable Connectivity Program (ACP) subsidy beyond November's presidential elections, T-Mobile has notably stayed out of it.
T-Mobile's recent plan change has stirred interest in the telecom world. While many big companies support President Joe Biden's subsidy extension plan, T-Mobile has chosen not to.
Strategic Moves of T-Mobile, Navigating Telecom Politics
T-Mobile's recent change in direction has caught people's attention. Lightreading reported that analysts think this move might be part of T-Mobile's plan to get regulatory support for its merger with UScellular.
According to Blair Levin, a policy adviser to New Street Research and a former Federal Communications Commission (FCC) official, the fate of the T-Mobile-UScellular merger could depend on the voters' decision on whether the deal will be judged by appointed officials of Joe Biden or former President Donald Trump.
Levin noted that if Biden prevails, a Democratic-led FCC might demand T-Mobile to make specific commitments to serve low-income families. As a result, T-Mobile might delay offering better deals for low-income households until the merger is approved.
It's hardly unexpected to see such political tactics at play. Levin cited a Washington Post report highlighting Comcast's use of a similar approach during its bid to secure regulatory clearance for acquiring NBCUniversal.
Additionally, T-Mobile's top brass is well-versed in the political landscape of Washington, DC. The company's ex-CEO faced scrutiny in 2019 for his stay at Trump's hotel while lobbying for support for T-Mobile's acquisition of Sprint - a deal that eventually got the green light.
While 14 big telecom companies have backed the Biden administration's call to extend the Affordable Connectivity Program (ACP) subsidy beyond November's presidential elections, T-Mobile has notably stayed out of it.Mika Baumeister from Unsplash
14 Providers Commit to Affordable Internet
The Biden administration's ACP officially concluded on May 31. For more than 23 million households, the ACP has provided monthly discounts of up to $30 on internet bills for eligible families and up to $75 monthly for those on qualifying tribal lands.
The White House recently announced that it had secured commitments from 14 internet service providers to continue offering plans at $30 or less to low-income households until the end of this year so that families can continue accessing low-cost internet.
Telecompetitor reported the roster of participating providers, which includes Allo Fiber, Altafiber (and Hawaiian Telcom), Astound Broadband, AT&T, Comcast, Cox Communications, IdeaTek, Mediacom Communications, MLGC, Optimum, Spectrum (Charter Communications), Starry, Verizon, and Vermont Telephone Company.
T-Mobile is the only major telecom company not included in the list of service providers backing the White House's initiatives. Many experts believe that T-Mobile might encounter difficulties gaining approval for its $4.4 billion deal to buy UScellular's wireless operations and certain spectrum assets.
Jim Patterson from Patterson Advisory Group emphasized the challenge of proving the deal's public benefit without losing its value. Adding to the challenge is T-Mobile's aim to purchase about 30% of UScellular's spectrum holdings, which could push T-Mobile's spectrum holdings beyond a limit set by the FCC.
