T-Mobile acquisition of SunCom approved; T-Mobile forced to allow Department of Homeland Security snooping

When Deutsche Telekom (NYSE: DT) bought up VoiceStream in 2001 to bring T-Mobile (NYSE: DT) USA online, the FBI and Department of Justice (DoJ) essentially forced the company to comply with regulations that would allow constant communications surveillance (presumably under the pretense of national security). Well, now that T-Mobile USA is acquiring SunCom, the merger is under renewed scrutiny by federal authorities. While the FCC wasn’t concerned over reduced competition, the Department of Homeland Security (DHS) wasn’t going to give in to the deal without a bit of benefit on its end.

The FCC gave the T-Mobile/SunCom merger the green light, but only after the DHS was able to “convince” T-Mobile to give the agency the same monitoring powers that were granted to the FBI and DoJ. Approval of the license transfers were reportedly held-up until the 2001 agreement that allowed the FBI and DoJ to monitor communications at will was amended to grant the DHS the same powers. The deal was also intended to limit a foreign company’s influence over domestic communications.

So, T-Mobile is now good to acquire SunCom, but they also have to hand over their network communications to the Department of Homeland Security. Yea, it’s hard being a foreign wireless carrier in the US.

Take a look at the FCC documentation outlining this deal. (PDF link)

[Via: BetaNews]