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Sprint, SoftBank Deal Likely Finished by May
Regulators Likely to Green Light Deal With Few Conditions
by Karl Bode 10:25AM Friday Mar 22 2013
The FCC this week stated that Softbank's $20 billion acquisition of Sprint is on track for a late May ruling, with all signs pointing to approval. The FCC's 180 day "shot clock" for approval ends on May 29. The CEOs of SoftBank, Sprint, and Clearwire all met with the FCC last week to push for approval of their various deals, including Sprint's acquisition of Clearwire. In a research note to investors this week, Stifel analysts Christopher King and David Kaut stated they believe the deal will see approval without many conditions:
quote:
The comments also reinforce our expectation that the Commission will approve the transactions, unless market developments intercede. If the deals were raising heavy regulatory objections, our sense is the chairman would probably be more circumspect about timing...The FCC could still impose some merger conditions. Spectrum aggregation is a particular focus of some parties that say all of Clearwire’s 2.5 GHz band is both "suitable" and "available" for mobile broadband, and should thus be counted
toward the agency’s spectrum screen that triggers heightened scrutiny.
By "some parties," the analysts mean Verizon, who pushed for heightened regulatory scrutiny of the deal given it would create a far tougher competitor for the company. AT&T has also tried rather unsuccessfully to use xenophobia to raise questions about the deal. The DOJ had previously asked the FCC to delay approval so they could finish up routine national security and law enforcement analysis of letting a Japanese carrier own such a large stake in the company.

Stifel analysts argue that the DOJ could impose conditions intended to address any potential political issues with SoftBank's ties to Huawei and ZTE. Accusations of Chinese spying through routine network hardware has reached hysterical levels of late, regardless of whether those concerns are supported by actual evidence.

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xenophon

join:2007-09-17

Make it so

Expand your moderator at work

Probitas

@teksavvy.com

just accept that...

The Chinese spy. Treat it like the weather, it happens, regularly, with no specific degree of severity from one day to the next. You'll live longer and have less stress.

atuarre
Here come the drums
Premium
join:2004-02-14
Conroe, TX

Re: just accept that...

WTF are you talking about. Softbank is a Japanese company, and even though you think they might all look alike, I assure you the Japanese and the Chinese are nothing alike.
broccoli

join:2007-11-29
Portland, OR

1 edit

Re: just accept that...

said by atuarre:

Softbank is a Japanese company

Its boss is (ethnic) Korean.

pointingout

@comcast.net
said by atuarre:

WTF are you talking about. Softbank is a Japanese company, and even though you think they might all look alike, I assure you the Japanese and the Chinese are nothing alike.

I think the reference was to the ties of ZTE and Hawie (sic?) which are Chinese. Trying reading before atempting to educate.

Dr Demento
I Vant Blud

join:2002-01-02
Denville, NJ

Re: just accept that...

said by pointingout :

said by atuarre:

WTF are you talking about. Softbank is a Japanese company, and even though you think they might all look alike, I assure you the Japanese and the Chinese are nothing alike.

I think the reference was to the ties of ZTE and Hawie (sic?) which are Chinese. Trying reading before atempting to educate.

Logic Fail! ZTE and Hawei are only claiming to be partners in the sense that Softbank bought their networking hardware to deploy 4G in Japan. There is no indication that they would do the same thing in the US considering Sprint's LTE deployment is well under way which Hawei and ZTE tried to bid for yet were blocked. I doubt a Softbank owned Sprint will violate existing contract to spite their face value.