AT&T’s plan to acquire Time Warner could face a rough ride from regulators. But, according to media reports, the proposed merger has a key fact in its favor: Time Warner holds only a single broadcast license—for an Atlanta TV station—which means the companies might avoid the FCC altogether altogether by divesting the TV station.
It turns out it’s not that simple. While Time Warner does indeed have only one broadcast license, it also has dozens of FCC licenses for satellites. And if AT&T, or anyone else, wants to acquire those licenses, it must obtain permission from the FCC as part of a standard process for transferring spectrum-related assets.
“TW has dozens of satellite licenses. If AT&T acquires Time Warner and those licenses then there would be FCC review,” says John Bergmeyer, a lawyer with the research group Public Knowledge.
This contradicts reports by outlets like Reuters and the New York Times, which have suggested AT&T could duck FCC review altogether by divesting the Atlanta TV station.
As FCC records show, the satellite licenses in question relate to dozens of so-called “Fixed Earth Stations,” which Time Warner operates in various states, including New York, Ohio, and Georgia. A person familiar with the licenses, who did not want to be named, tells Fortune that Time Warner uses the satellites for its CNN operations and in distributing TV properties like HBO.
Unlike the Atlanta TV station, which is attached to a single broadcast license, it’s unclear if Time Warner could divest itself of the satellite licenses without disrupting its core programming and distribution operations.
AT&T told Bloomberg it is studying “which FCC licenses, if any, will be transferred” as part of the deal. An AT&T spokesperson did not immediately respond to Fortune about whether the satellite licenses are an integral part the merger.
Read full story at http://fortune.com/2016/10/26/att-time-warner-fcc-2/
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