DOJ asks FCC to delay action on Sprint-Softbank deal

The Justice Department says more time is needed to look for potential security, law enforcement and safety issues

The U.S. Department of Justice and the Department of Homeland Security have asked for more time to consider Softbank's proposed takeover of Sprint Nextel, a move that may signal a rough road ahead for the US$20 billion deal.

In a letter to the Federal Communications Commission, dated Monday, the DOJ asked the FCC to defer action on the deal because it hasn't finished reviewing the proposal for national security, law enforcement and public safety issues. It filed the letter in conjunction with the Federal Bureau of Investigation, which is part of the DOJ, and the Department of Homeland Security. The DOJ asked that the FCC hold off until the agencies have finished their review and requested FCC action. The filing was reported earlier Tuesday by GigaOm.

Last October, Softbank proposed investing $20 billion in Sprint and acquiring a 70 percent stake in the company. Though Japan is considered a close U.S. ally, some observers have said lawmakers might object to significant foreign ownership of Sprint, the third-largest U.S. mobile operator.

If approved, the deal would greatly strengthen Sprint to better compete against AT&T and Verizon Wireless. It would also allow Sprint to buy out the rest of partner company Clearwire and gain access to that company's large reserves of wireless spectrum. But those plans have faced some opposition from other carriers, and Dish Network has made a higher counter-offer for Clearwire.

T-Mobile USA is owned by Germany's Deutsche Telekom, and Verizon Wireless is a joint venture between Verizon Communications and U.K.-based Vodafone.

Stephen Lawson covers mobile, storage and networking technologies for The IDG News Service. Follow Stephen on Twitter at @sdlawsonmedia. Stephen's e-mail address is stephen_lawson@idg.com

Join the newsletter!

Error: Please check your email address.
Rocket to Success - Your 10 Tips for Smarter ERP System Selection

Tags governmentmobileregulationMergers and acquisitionsbusiness issuesU.S. Department of JusticeU.S. Federal Communications CommissionU.S. Department of Homeland SecurityU.S. Federal Bureau of Investigation

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Stephen Lawson

IDG News Service
Show Comments

Cool Tech

SanDisk MicroSDXC™ for Nintendo® Switch™

Learn more >

Breitling Superocean Heritage Chronographe 44

Learn more >

Toys for Boys

Family Friendly

Panasonic 4K UHD Blu-Ray Player and Full HD Recorder with Netflix - UBT1GL-K

Learn more >

Stocking Stuffer

Razer DeathAdder Expert Ergonomic Gaming Mouse

Learn more >

Christmas Gift Guide

Click for more ›

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Edwina Hargreaves

WD My Cloud Home

I would recommend this device for families and small businesses who want one safe place to store all their important digital content and a way to easily share it with friends, family, business partners, or customers.

Walid Mikhael

Brother QL-820NWB Professional Label Printer

It’s easy to set up, it’s compact and quiet when printing and to top if off, the print quality is excellent. This is hands down the best printer I’ve used for printing labels.

Ben Ramsden

Sharp PN-40TC1 Huddle Board

Brainstorming, innovation, problem solving, and negotiation have all become much more productive and valuable if people can easily collaborate in real time with minimal friction.

Sarah Ieroianni

Brother QL-820NWB Professional Label Printer

The print quality also does not disappoint, it’s clear, bold, doesn’t smudge and the text is perfectly sized.

Ratchada Dunn

Sharp PN-40TC1 Huddle Board

The Huddle Board’s built in program; Sharp Touch Viewing software allows us to easily manipulate and edit our documents (jpegs and PDFs) all at the same time on the dashboard.

George Khoury

Sharp PN-40TC1 Huddle Board

The biggest perks for me would be that it comes with easy to use and comprehensive programs that make the collaboration process a whole lot more intuitive and organic

Featured Content

Product Launch Showcase

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?