The FCC is the most likely roadblock to...

The FCC is the most likely roadblock to Sprint’s potential buy of T-Mobile, but a merger remains possible, even given concerns raised by FCC Chairman Tom Wheeler, said BTIG analyst Walter Piecyk Tuesday in a blog post. “Chairman Wheeler has voiced his skepticism about the potential for a Sprint/T-Mobile deal but we believe he is well suited to evaluate the transaction on its merits,” Piecyk wrote. “The wireless industry not only faces new competition from more Wi-Fi buildouts but can also offer new competition to the wired broadband industry. Competition is not just about lower prices but also about investment in the network, a reality that is likely to be recognized in several European markets that are evaluating the benefits of consolidation.” Piecyk said T-Mobile and Sprint together are investing less in their networks than either AT&T or Verizon individually. “Even today, Sprint offers the slowest LTE speeds in the industry as a result of its under-investment and its narrow use of spectrum,” he said. “Meanwhile, T-Mobile recently paid $2.03/MHz/POP for the worst of available 700 MHz spectrum because they did not have the capital to adequately compete in the original 700 MHz auction.”