Analyst: DT-VoiceStream deal is done

(Telephony) FCC commissioners have voted unanimously to approve Deutsche Telekom’s controversial purchase of U.S. wireless operator VoiceStream, according to an analyst and former FCC employee.

“The deal is done, and all four commissioners have approved it … with no significant conditions attached to it,” said Rudy Baca, global strategist for The Precursor Group. “It will be released in the next couple of days, probably on Friday.”

Baca said the order to approve the merger is in the final editing process—“they’re literally playing with commas right now.”

The approval would mark the end of a most contentious merger-review process, as the deal was opposed by a group of lawmakers led by Sen. Ernest Hollings, D-S.C. In fact, Hollings proposed legislation last fall that would have prevented the FCC from considering the deal.

Federal law prohibits companies that are more than 25% owned by foreign governments—Deutsche Telekom is 58% owned by the German government—from buying U.S. telecom licenses. However, the FCC can waive the stipulation if it deems the deal to be in the public interest. Hollings’ proposals—in the form of a standalone bill and a rider on an appropriations bill—would have prevented the FCC from using this waiver power. Both measures failed.

While the FCC has been expected to bless the merger, there was some question whether it would receive unanimous support, as Commissioner Gloria Tristani was believed to be wavering. Baca said he learned of her support for it this morning.

“You can’t be considered an ‘international commissioner’ and vote against a deal like this,” Baca said. “And each of the commissioners likes to consider themselves an ‘international commissioner.’”