The Embarq/CenturyTel merger is not just pending FCC approval. The transaction, which affects more than eight million access lines in 33 states, must be approved by regulatory agencies in several states.
Washington and Oregon are pivotal in this, partly because of the extensive rural coverage CenturyTel has in both states, and the merger raises substantive issues about industry consolidation and quality of rural service. Were the Washington or Oregon Public Utility Commission to deny the merger, it would likely kill the deal. It is for this reason that Embarq and CenturyTel tried to avoid having the Oregon PUC rule on the merger until a decision by the Oregon Attorney General forced them to do so.
Embarq and CenturyTel tried to fly under the radar, quietly filing their petition on January 1, 2009 with the Oregon PUC (note that the actual petition doesn’t start until page 218 of the .pdf; the rest is data pro forma required by the PUC — got to love state PUCs for having data requirements for corporate petitioners that the FCC never thought about having). There was no public notice until Administrative Law Judge Allan J. Arlow issued a Notice of Prehearing Conference on the PUC website today. The conference will take place on Friday, March 6, 2009 at 1:30 p.m. at the PUC in Salem. This conference “will be to identify parties and interested persons, establish a service list with addresses and telephone numbers, identify issues, and set a procedural schedule.” It is possible to be conference-called into this conference from out-of-state. Call the number on the Notice to arrange it.
What is extremely important is that this proceeding is moving forward very quickly. Parties which have filed as intervenors in other states, including public interest groups, have apparently not taken notice of this fact, as evidenced by the lack of filers in the relevant docket, UM-1416. It is possible to file as an intervenor or interested party electronically. Essentially, if there are few intervenors, it is likelier that public hearings will not take place.
There is a real chance to get serious conditions imposed on this merger if people move fast.

Auction 86 — All Over, But Rural America is Shafted Again.
Auction 86, the BRS auction, is over and all bids have cleared. There were no defaults. The auction netted a mere $19,426,600, rather less than most industry analysts speculated before the auction. However, it must be remembered that the BTA licenses up for auction were heavily encumbered with the need for interference agreements with P35 license holders and resembled more “white space” swiss-cheese spectrum than real BTA licenses.
The bidding ended after 24 rounds in four days on Oct. 30. However, it took until now to be certain that no winning bidder was going to default.
As expected, Clearwire took the overwhelming majority of licenses at offer, 42 of them for $11,177,000. Those licenses represent a deepening of Clearwire’s spectrum pool for national footprint and, in a few cases, even expanded it. Utopian Wireless and DigitalBridge Spectrum, companies which are concentrating on providing WiMax in areas where Clearwire is not deploying, acquired 4 and 2 licenses, respectively. As expected, Stratos Offshore Services and Trident Global Communications shared the three new Gulf of Mexico licenses, 2 and 1 respectively, for a little over $2.5 million, the third most expensive acquisitions. Vermont Telephone Company acquired three licenses in its current footprint for the second highest expenditure in the auction, $2.8 million.
The other successful bidders included James E. McCotter (3 licenses), Ztark Communications (2), Cellular South (1), and Twin Lakes Telephone Cooperative (1) — all reinforced existing license footprint. Broadcast Cable Bloomington, Chevron USA, Emery Telecom-Wireless, Gateway Telecom, N-1 Communications and Pulse Mobile all walked away with no wins.
More interesting still, 17 licenses failed to clear. These licenses were overwhelmingly in rural areas, continuing the pattern established by Clearwire and its cableco and telco partners of redlining a substantial portion of rural America for broadband service generally and WiMax in particular. If this pattern had been allowed to prevail in rural electrification, much of the West and the South would still not have electricity. It makes you wonder where FDR is when you really need him.