Key facts
- Senator Ted Cruz is questioning T-Mobile's $2.9 billion spectrum deal with Grain Management.
- The deal involves T-Mobile selling 800 MHz spectrum licenses and receiving Grain's 600 MHz licenses.
- Cruz fears Grain Management may delay spectrum use for speculative purposes.
- He is urging the FCC to mandate specific deployment requirements for the transaction.
- The 800 MHz spectrum is ready for immediate deployment amid rising U.S. mobile data usage.
Senator Ted Cruz, chair of the Senate Commerce Committee, has raised concerns about a plan by private investment firm Grain Management to acquire key wireless spectrum from T-Mobile. The deal, valued at $2.9 billion in cash and Grain's 600 MHz spectrum licenses, could potentially lead to years of delay in the spectrum's use, according to Cruz.
In a letter, Cruz urged the Federal Communications Commission (FCC) to approve the transaction only with specific, enforceable deployment requirements, stating that valuable spectrum should not remain underutilized amid increasing demand. He questioned whether Grain intends to deploy the spectrum quickly or hold it for speculative profit, which he believes undermines economic and national security interests.
Cruz highlighted that the 800 MHz spectrum T-Mobile plans to sell is ready for immediate deployment, noting a significant increase in U.S. mobile data usage. The FCC's authority to auction wireless spectrum was previously impacted by a standoff concerning the Pentagon's needs.