I am perusing Federal Communications Commission chairman Julius Genachowski’s fact sheet from his remarks at the CTIA 2011 Wireless Conference in Orlando, Florida. I am so tempted to go Mickey Mouse on the FCC, but that would be cheesy. Ooops.
Seriously, Mr. Genachowski makes some arguments that completely support the premise behind AT&T, Inc.’s purchase of T-Mobile USA. For example, Chairman Genachowski cited the forecasted increase in data traffic expected over the next five years. The chairman pegs it at 35 times today’s traffic. AT&T cites this as one of the primary reasons behind acquiring T-Mobile.
Chairman Genachowski cited the increase in the number of downloads in apps. He cited 5 billion downloads in 2010 compared to 300 million in 2009. Again, this supports AT&T’s argument about the constraints on its network due to increased data traffic.
Chairman Genachowski also reiterated the FCC’s position, first expressed by the chairman in December 2010, that the FCC intends to remove unnecessary regulations that impeded bringing innovative products to the market. Well, the chairman should be pleased that AT&T is using a time honored, free market technique, acquisition, to avoid additional barriers to entry thus speeding up the process for getting new product to market.
Yes, Chairman Genachowski is saying the right things. He should take actions that back them up. No one is saying that the FCC should shirk its responsibilities for reviewing this transaction. The FCC should, however, consider fast-tracking its review. AT&T estimates and other analysts have concluded that the process may take twelve months. I don’t see the need for such a prolonged process. With agitators like Free Press and Public Knowledge chomping at the bit to intervene in the FCC’s review, and the size of the transaction, we shouldn’t expect a review of a few months either.
Hopefully the FCC can identify a “third way approach to approving the acquisition. Twelve months is a generation in the world of broadband.
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