Company explains how Mint's acquisition by T-Mobile could harm vulnerable consumers
While T-Mobile is waiting to close the deal to buy Mint Mobile, another objection has been raised against it.
British Mobile Virtual Network Operator (MVNO) Lyca Mobile has filed an objection with the FCC to oppose T-Mobile's proposed acquisition of Mint Mobile, reports Light Reading.
MVNOs don't operate their networks on their own towers but rely on a licensed mobile operator's network to sell mobile services.
In the US, Lyca Mobile uses T-Mobile's network and things haven't been going well between the two for quite some time.
In its FCC filing, Lyca Mobile says that it occupies a small but unique place in the US wireless market and competes directly with Mint Mobile. It says that it provides wireless services to low-income communities, migrants, and refugees.
Mint also runs on T-Mobile's network and Lyca Mobile claims that the carrier treats the two differently to advance its motives. Lyca Mobile says that obtaining basic functionalities that T-Mobile is obligated to provide to it, including eSIM and access to 5G standalone architecture has become a struggle, and believes that T-Mobile is purposely doing that to give Mint an advantage over it.
The company fears that this anti-competitive behavior will only worsen if the acquisition is allowed to go through and harm not only Lyca but also the vulnerable population it serves.
It says that the behavior T-Mobile is exhibiting is exactly what opponents of the Sprint merger warned about. It gave the example of T-Mobile's reluctance to solve everything amicably after some contractual issues to terminate its agreement with Lyca.
The Commission, the Department of Justice, and many industry stakeholders rightfully raised similar concerns five years ago when T-Mobile’s merger with Sprint was announced. Many commenters warned the Commission that the transaction would pose a critical threat to MVNOs, and that is now occurring in real time. After consideration of the facts offered in this filing, Lyca respectfully requests that the Commission deny the requested transfers of control, protect competition among MVNOs, and protect vulnerable consumers that rely on the affordable wireless service offered by independent MVNOs such as Lyca Mobile." - Lyca Mobile
Lyca argues that after the proposed acquisition, Mint will become an in-house MVNO, further incentivizing T-Mobile to treat Lyca unfavorably with the hopes of driving it out of the US.
T-Mobile responded with its own filing, stating that Lyca is unnecessarily bringing up an unrelated contract issue in the FCC's public interest review of the transaction. It also takes issue with Lyca's allegation that it's not honoring its Sprint merger commitments and notes that it failed to identify any commitment that wasn't met.
Most importantly, T-Mobile notes that the deadline to file objections passed nine months ago, which is enough grounds to dismiss it.
T-Mobile's proposed acquisition of Ka’ena Corporation, which owns Mint Mobile and Ultra Mobile, is expected to be worth $1.35 billion. It's currently pending as the FCC is still evaluating it.
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