Subject: [NEXTEL-1] Spectrum Divestiture Unlikely

From: [email-masked]
Date: Tue, 17 Feb 2004 14:32:44 -0500

Spectrum Divestiture Unlikely

BY MARK ROCKWELL
FEBRUARY 17, 2004

WASHINGTON -- There won't be much concern about the combination of AT&T Wireless
and Cingular Wireless spectrum in regulatory consideration of the merger between
the two companies, analysts say.

Spectrum overlap in certain markets where the two companies operate "isn't a big
deal," says Herschel Shosteck, president of The Shosteck Group, a Maryland-based
wireless consultancy. The FCC removed the spectrum cap in 2003, and intense
scrutiny of wireless mergers would be "contrary to the FCC's general policy of
letting the market decide what's best," he says.
"There will be no [regulatory] problem until there are only three competitors"
instead of the five now on the playing field, he says. The dynamic of three big
providers, he contends, has long served the fiercely competitive long-distance
market.

Telecom industry analyst Jeff Kagan says regulators have to look closely at any
anti-competitive possibilities in combining the two companies' spectrum, but
"regulators understand the need for consolidation in wireless markets and will
make it easier, not harder, for wireless carriers to combine."

http://www.wirelessweek.com/index.asp?layout=newsat2direct&starting=2&pubdate=02/17/04

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