Text | Word97

fcclogo NEWS

Federal Communications Commission
445 12th Street, S.W.
Washington, D.C. 20554
News media information 202 / 418-0500
Fax-On-Demand 202 / 418-2830
Internet: http://www.fcc.gov
TTY: 202/418-2555

This is an unofficial announcement of Commission action. Release of the full text of a Commission order constitutes official action. See MCI v. FCC. 515 F 2d 385 (D.C. Circ 1974).

September 29, 2000
Meribeth McCarrick at (202) 418-0654
e-mail: mmccarri@fcc.gov


Washington, DC – The Federal Communications Commission’s Wireless Telecommunications and International Bureaus have granted approval for SBC Communications Inc. (SBC) and BellSouth Corporation (BellSouth) to transfer control of or assign their respective U.S. wireless licenses and associated international authorizations to a newly-formed entity, currently called Alloy LLC. The Bureaus concluded that the combination of SBC and BellSouth’s U.S. wireless properties will not adversely affect competition in any U.S. telecommunications market and will permit the companies to form a wireless network capable of competing with other companies that provide service on a nationwide basis.

This transaction combines almost all of the current U.S. mobile wireless operations of SBC and BellSouth. The companies informed the Commission that they plan to contribute to the new venture almost all of their substantial cellular and PCS businesses. In addition, BellSouth will contribute authorizations for 900 MHz SMR services that are used to operate its mobile data network. Other authorizations that are incidental to the mobile wireless businesses will be contributed to Alloy, including certain fixed microwave services, experimental services, private land mobile radio services, and international Section 214 authorizations. According to the companies, the combination of their U.S. wireless operations will create a company capable of serving approximately 175 million people, in 40 of the 50 top U.S. markets.
The applications of SBC and BellSouth to transfer control of or assign various wireless licenses and associated international authorizations to Alloy LLC were filed with the FCC on May 4, 2000; a public notice accepting the applications for filing was issued on May 19, 2000. Today’s approval was conditioned on: (1) divestiture of cellular interests in certain Louisiana cellular markets to comply with the FCC’s cellular cross-ownership rule; and (2) divestiture of wireless interests in the Indianapolis MTA and the Los Angeles MTA sufficient to comply with the FCC’s CMRS spectrum aggregation limit. With respect to the PCS/cellular overlap that will be created in the Los Angeles-San Diego MTA by this transaction, the FCC granted the companies’ request for a limited and temporary waiver of the CMRS spectrum aggregation limit through January 27, 2001.

Action by the Chief, Wireless Telecommunications Bureau, and Chief, International Bureau, September 29, 2000, Memorandum Opinion and Order (DA 00-2223). Wireless Bureau Contacts: Lauren Kravetz at (202) 418-7944, e-mail: lkravetz@fcc.gov, Michael Samsock at (202) 418-7588, e-mail: msamsock@fcc.gov; TTY at (202) 418-7233.

International Bureau Contacts: Elizabeth Nightingale at (202) 418-2352, e-mail: enightin@fcc.gov.