Last week the National Association of Broadcasters (NAB) filed a letter with the Federal Communications Commission urging the agency to bless the merger of MetroPCS and T-Mobile. NAB’s president and chief executive officer Gordon H. Smith made some strong free market arguments in support of NAB’s position. Mr. Smith said that the remarkable power of the free market was enabling wireless companies to address spectrum concerns.

Mr. Smith opined that, “[t]his merger is part of an essential transformation that the wireless industry has undergone over the past year alone. Wireless carriers have responded to the initially surprising surge in demand for data by restructuring to rationalize their considerable spectrum holdings.”

Mr. Smith goes on further to say that the merger will help wireless companies use spectrum more efficiently and that “the transaction will address major spectrum constraints facing both T-Mobile USA and MetroPCS by combining their highly complementary spectrum portfolios.”

If anything the merger speeds up the transfer of spectrum from one spectrum holder to the next. It is a lot faster than the voluntary auctions slated to start later this year that would send spectrum from television broadcasters to wireless communications providers. It would make sense that NAB is pulling for T-Mobile and MetroPCS to pass muster. It would probably put less pressure on its member stations to dip their toes into the auction soup.

A post in the Motley Fool describes AT&T management as “bullish” when it comes to spectrum. The post uses AT&T’s attempts at acquiring T-Mobile last year (Wow, has it been a year?) as an example. Another example includes buying smaller companies in order to obtain more spectrum. AT&T’s two-year data plan package for 3G and 4G tablets is expected to eat into Sprint’s reputation as the cheapest provider of data, according to Motley Fool.

The bullishness appears like the appropriate strategy in my opinion. Sprint has made 70% of itself available for purchase by Japan’s Softbank and is also considering buying out the remaining investors in Clearwire. While Sprint’s pending moves won’t be enough to knock AT&T or Sprint from their industry leading positions, Sprint can become a stiffer competitor in the wireless market.

Hopefully the Federal Communications Commission continues to play observer this time around. A facilitating regulator the FCC was not as it signaled to the industry and the U.S. Department of Justice its lack of support for last year’s proposed takeover of T-Mobile by AT&T. By rule, the FCC must approve the transfer of licenses from Clearwire to Sprint assuming Clearwire no longer operates as a separate entity if Sprint goes ahead with a buy. I would not be surprised if Sprint goes ahead with a complete acquisition that sends Clearwire into spectrum heaven. It would probably make the company more valuable to Softbank if Sprint actually has its name on those licenses.

Either way, the FCC should, to use a sports term, let them play. If any regulatory approvals are needed, they should be granted with haste. A minimalist regulatory approach is what’s needed right now.

Last week, T-Mobile USA and MetroPCS announced intent to merge their companies. On 11 October 2012, MetroPCS, in a filing with the U.S. Securities and Exchange Commission, distributed the following notice to its customers:

What does this potential T-Mobile combination mean to me?

Nothing will change with your service, your plan or your phone, or where you can pay your bills or receive customer support. MetroPCS remains focused on providing an exceptional wireless experience with state-of-the-art 4G LTE service and smartphones at a tremendous value. Each day, we’re seeing thousands of people upgrade to and choose MetroPCS’ 4G LTE because of our unmatched unlimited offering. We think our tremendous value proposition will only get better after the T-Mobile combination. But for now, it is business as usual with the same driven focus on delivering exceptional service and experience to you.

Upon completion of the combination with T-Mobile, the plan is to keep the MetroPCS brand name, our places of distribution and the way we do business. The only real difference you should see is that MetroPCS will offer an even broader array of affordable, cutting-edge handsets and mobile services for the same great value you have come to expect from MetroPCS. This will mean you have more choices, more coverage and greater access to a faster, broader, higher capacity 4G network — where you live and in more cities throughout the U.S.

When is the potential T-Mobile combination expected to complete?

We expect the combination to close in the first half of 2013, subject to MetroPCS stockholder approval, regulatory approvals and other customary closing conditions.

Will my rate plan or mobile services change?

No. Your rate plan will not change as a result of the announcement of the T-Mobile combination. You will continue to receive an exceptional mobile experience at a great value and the price of your plan will stay the same.

Your mobile service will not be affected by the announcement of the T-Mobile combination. We will still provide the same mobile service you’ve come to expect, choice in services and handsets – while still offering affordable unlimited talk, text and data.

Upon completion of the combination with T-Mobile, we will have the opportunity to offer you an even wider selection of affordable, cutting-edge handsets and mobile services. This will mean more coverage with greater access to a larger 4G network — where you live and in more cities throughout the U.S.

Will MetroPCS’ rate plans still be unlimited and tax inclusive?

Absolutely. All MetroPCS customers currently on a tax inclusive plan will remain on such and all new customers will continue to be offered unlimited tax and regulatory fee inclusive rate plans.

Does this mean that I will be required to sign a contract for wireless services, or am I now under a contract?

No. You are not required to sign a contract to continue to receive your current service. MetroPCS remains committed to providing you affordable wireless service with no annual contract.

The completion of the T-Mobile combination will not change our no-annual contract model. Our plan is for your service to continue on a no-annual contract basis providing you with a great mobile experience at the best value.

How long will my handset or smartphone work on MetroPCS with the impending T-Mobile combination?

The announcement of the combination with T-Mobile will not interrupt our ability to provide wireless services to you.

You will continue to be able to purchase or upgrade your handset from the current and future lineup of handsets available at any local area MetroPCS store, on your handset via MyMetro app, or at metropcs.com.

Upon completion of the combination with T-Mobile, you will have more choices, more coverage and greater access to a faster, broader, higher capacity 4G LTE network. And, you will have a broader array of affordable, cutting-edge handsets for upgrade purposes and a broader array of mobile services to choose from for the same great value. We do anticipate that by the second half of 2015, customers who have not already upgraded their handsets, will need to upgrade their handsets to one of the wide range of affordable, cutting-edge handsets that will be available at that time.

How do I pay my bill? Can I pay at T-Mobile stores now?

For the immediate future, continue paying for service as you always have through the existing MetroPCS payment channels. If those channels are expanded in the future, we’ll communicate that information to you as quickly as possible.

Again the transaction is expected to complete in the first half of 2013 — subject to MetroPCS stockholder approval, regulatory approvals and other customary closing conditions. And during this time, MetroPCS and T-Mobile will be, and continue to operate, as independent companies and continue to compete vigorously – having no impact on MetroPCS’ day-to-day operations.

I’ve heard that T-Mobile intends to force MetroPCS customers to move to T-Mobile as soon as the combination is completed. Is that true?

Absolutely not. Existing customers will continue to experience the same great MetroPCS coverage you have come to expect.

Immediately, nothing will change with your service, your plan or your phone. MetroPCS will remain focused on providing an exceptional wireless experience with state-of-the-art 4G LTE service and smartphones at a tremendous value. Each day, we’re seeing thousands of people upgrading to and choosing MetroPCS’ 4G LTE, and we think the value we offer will only get better after the T-Mobile combination.

Over time, customers who choose to upgrade to one of the affordable, cutting-edge smartphones that will be available will also have the benefit of experiencing an even larger and faster 4G network that combines the best of T-Mobile and MetroPCS.

Will I get better coverage?

One of the key benefits of the proposed combination with T-Mobile will be deeper 4G LTE network coverage and a clear-cut technology path to one common 4G LTE network and the ability to migrate customers to a faster, broader, higher capacity 4G network.

More specific details about changes to coverage areas will be available in the future. We will keep you updated on our progress and other important developments

The Federal Communications Commission yesterday denied T-Mobile USA’s request for an extension on construction of its Local Multipoint Distribution Service (LMDS) for wireless backhaul services. T-Mobile was originally required to demonstrate by 5 June 2008 that it was in compliance with the substantial service requirements of 16 LMDS licenses. The FCC then granted an extension until 1 June 2012. Yesterday’s denial of T-Mobile’s request for an extension in yesterday’s order resulted in a termination of the 16 LMDS licenses.

LMDS was originally conceived for digital television transmission, but has been used as a fixed point to multipoint technology for signal distribution in the last mile.

T-Mobile argued that it faced difficulties obtaining equipment for construction at an affordable rate. It also pointed out that LMDS did not yet represent an attractive alternative technology for wireless backhaul services. In addition, the company claimed that its merger negotiations last year with AT&T required that its LMDS construction plans be delayed.

The FCC found that none of T-Mobile USA’s arguments justified its request for an extension. To be eligible for an extension, T-Mobile had to show that failure to meet its construction deadline was due to involuntary loss of site or other causes beyond the company’s control.

The FCC found that because T-Mobile USA had other ways to develop its service independent of the backhaul market that pace of development of the LMDS market was not justification for granting an extension. In addition, the FCC found that the market for LMDS has been developing steadily.

Also, as a carrier with increasing backhaul demand, T-Mobile was in a better position to develop LMDS equipment for backhaul use. While T-Mobile was failing to make an active attempt to develop LMDS for backhaul and use and meet its deadline, other carriers met the 1 June 2012 deadline.

The FCC also severely discounted T-Mobile USA’s merger excuse finding that decision to enter negotiations with AT&T was a voluntary decision.

There was no indication yesterday that the decision to deny the extension request and automatically terminate the licenses had any impact on the share price of Deutsche Telekom AG, the parent of T-Mobile USA.

The Hill.com today reported that T-Merger is in talks to purchase MetroPCS. According to the report the combined companies would have approximately 33 million subscribers. The company would still be in fourth place behind number three Sprint.

I don’t expect the Federal Communications Commission of the U.S. Department of Justice to do a thumbs down on this merger. Neither agency can use the anti-competitive effect argument here.

MetroPCS said in a Form 8-K filing that, “MetroPCS today confirmed that it is in discussions with Deutsche Telekom regarding an agreement to combine T-Mobile USA and MetroPCS. There can be no assurances that any transaction will result from these discussions, and the Company does not intend to comment further unless and until an agreement is reached.”