Regulators OK DT-VoiceStream union

(Telephony) At long last, German carrier Deutsche Telekom and VoiceStream Wireless have become one, according to the Federal Communications Commission. In recognizing that the merger will have “public interest benefits for U.S. consumers,” the FCC today approved the transfer of spectrum license control and other authorizations held by VoiceStream and Powertel to DT.

While all four commissioners approved the transaction, Commissioner Harold Furchtgott-Roth dissented on the condition that the Justice Department need be involved in the transaction. This was an area about which he had voiced concern in the past.

Several FCC officials today held a press conference to discuss this decision, but they were extremely tight-lipped, as the full text of the decision will not be available for the next couple of days.

The FCC officials did little more than reiterate the content in the current press release out on the wires. But they did discuss how consulting the foreign-ownership provisions in section 310 of the Communications Act helped the commission come to this long-awaited decision.

The commission found that the act does not prohibit “foreign governments from having indirect ownership of commission radio licensees in any amount in excess of 25%, unless the commission finds that the public interest is served by denial in a particular case.”

Although 45% of DT will be owned by the German government, the commission determined the merger will benefit U.S. consumers, because it will let VoiceStream build out its network, giving it national and international reach.

“We are opening our markets for investments…this is pro-competitive and it will help consumers,” one FCC official said.

In its press release, the commission stated it does not believe that the creation of the mega carrier will disrupt healthy competition in the U.S., although the FCC officials would not discuss how it reached that conclusion. Instead, they deferred to additional information to be released in the next couple of days.

Despite Furchtgott-Roth’s dissent, DT and VoiceStream must comply with the separate written agreement reached among DT, VoiceStream, the Department of Justice and the Federal Bureau of Investigation. The agreement addressed national-security, law-enforcement, and public-safety concerns raised in this proceeding by the FBI and DOJ.

An FCC official maintained that there should be no worries that any competitive conditions were tailored to this transaction.