T-Mobile, Sprint Moves at CPUC Hint at Early Closing

T-Mobile and Sprint might be trying to close their deal without California OK. Sprint advised the California Public Utilities Commission Monday evening that it is relinquishing its state certificate and the two carriers moved to withdraw their wireline transfer-of-control application.

Nearly two years after T-Mobile and Sprint sought California OK, “the nature of Sprint Wireline’s services has changed, and approval for the wireline transaction under California Public Utilities Code § 854(a) is no longer required,” the carriers said. Sprint completed transition of wireline services to VoIP, an information and interstate service that’s not regulated by the state, the carriers said. The carriers didn’t ask to withdraw a separate filing notifying the CPUC that they are combining wireless assets. Deal watchers said the state agency’s authority over wireless is murky.

The carriers had said they wanted to close April 1. California commissioners were expected to vote April 16 on a proposed decision to clear the deal with conditions. The companies didn't comment Tuesday morning.

“Timing is definitely driving this unusual action,” emailed former CPUC Commissioner Rachelle Chong. The carriers’ filings set the stage for the carriers to close without CPUC permission and gives them basis to challenge any conditions, Tellus Venture Associates President Steve Blum blogged.