Bloomberg the Company & Products

Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

FCC Chief Asks Agency to Approve Softbank Bid for Sprint

June 27 (Bloomberg) -- The head of the last U.S. agency reviewing SoftBank Corp.’s bid for control of mobile carrier Sprint Nextel Corp. recommended approval of the $21.6 billion deal.

Federal Communications Commission Acting Chairwoman Mignon Clyburn asked her two fellow commissioners to vote on the transaction that would give billionaire Masayoshi Son a position in the U.S. market, the agency said in an e-mailed statement.

The transaction would strengthen third-largest U.S. wireless carrier Sprint as a competitor to the country’s two biggest mobile carriers, Verizon Wireless and AT&T Inc.

Wireless operator SoftBank, based in Tokyo, told the FCC its control of Sprint, based in Overland Park, Kansas, would bring more investments in the mobile network and innovative pricing.

The deal would continue a re-ordering in the growing mobile market, after the fourth- and fifth-largest U.S. carriers combined May 1 into T-Mobile US Inc. after that company bought MetroPCS Communications Inc.

Shareholders of Sprint approved the deal with SoftBank on June 25, ending a takeover contest with Dish Network Corp., the satellite television provider seeking to expand its service offerings.

Huawei Assurances

U.S. antitrust and security officials earlier cleared SoftBank’s bid. The companies gave assurances they would limit use of telecommunications gear made by Huawei Technologies Co., based in Shenzhen, China.

A congressional committee last year said Huawei’s connections to the Chinese army created the potential for electronic spying. Huawei has said its exclusion is “misguided” and doesn’t resolve vulnerabilities arising from common global equipment supply chains.

The FCC’s review of the SoftBank-Sprint deal determines whether the transfer of control of Sprint’s airwaves is in the public’s interest.

Clyburn’s request included Sprint’s proposal to buy the half of Clearwire Corp. it doesn’t already own, according to the agency’s statement today.

The FCC has no deadline to act.

To contact the reporter on this story: Todd Shields in Washington at tshields3@bloomberg.net

To contact the editor responsible for this story: Bernard Kohn at bkohn2@bloomberg.net

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.