FCC Bureaus Approve SBC Communications Inc. and BellSouth Corporation License Transfers and Assignments
Washington, DC – September 29, 2000 - 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.