T-Mobile's $4 Billion Agreement Granted by Federal Regulator, Yet Following Their Abandonment of DEI Commitments
In a significant shift from previous regulatory practices, the US Federal Communications Commission (FCC) under Chair Brendan Carr has adopted a hardline stance against Diversity, Equity, and Inclusion (DEI) policies in major communications mergers and acquisitions. This stance, which has been met with both corporate compliance and political controversy, has seen companies like T-Mobile, Verizon, Comcast, and Paramount reconsidering their DEI initiatives.
The FCC, an independent agency of the US government that regulates communications across the nation, has made it clear that companies seeking approval for mergers and acquisitions must end their DEI efforts. Chair Carr has explicitly linked FCC approval to the rollback or elimination of DEI policies, describing them as "invidious" forms of discrimination.
Notably, T-Mobile and Verizon have responded by dismantling their DEI efforts to secure regulatory approvals. T-Mobile eliminated all DEI roles and disbanded related initiatives, removing DEI references from training materials and opening career opportunities equally to all employees. Verizon secured FCC approval for its $20 billion acquisition of Frontier Communications only after agreeing to end its DEI programs.
Carr’s approach involves opening investigations into companies like Comcast and Disney (parent of Paramount), signaling potential regulatory hurdles for media mergers if DEI initiatives persist. This move has garnered criticism from FCC commissioners like Anna Gomez, who viewed T-Mobile’s actions as cynical and undermining commitments to eliminating discrimination.
Carr justifies his stance by framing the move as being in the “public interest” and advancing “equal opportunity” and “non-discrimination,” asserting that DEI policies themselves represent exclusionary practices.
This stance received both corporate compliance and political controversy as companies balance regulatory demands against diversity and inclusion commitments. T-Mobile, for instance, has scrapped any roles or teams dedicated to DEI and has removed any references to DEI from its websites and training materials. The company was permitted to purchase nearly all of regional carrier United States Cellular's wireless operations, valued at $4.4 billion, and was also granted permission to acquire internet service provider Metronet, serving over 2 million homes and businesses in 17 states.
The FCC is currently reviewing Paramount's $8 billion merger with Skydance, and Carr commented on the changes, stating, "Another good step forward for equal opportunity, nondiscrimination, and the public interest." However, Carr has also threatened to block mergers and opened investigations into companies like NPR, PBS, Disney, ABC, and NBCUniversal for their continued promotion of DEI.
In a letter to FCC Chair Brendan Carr, T-Mobile stated it would terminate its DEI-related policies "not just in name, but in substance." This stance received both praise from those who support Carr's approach and criticism from those who view it as a step backwards in the fight against discrimination.
[1] Source: https://www.fcc.gov/document/fcc-republicans-call-for-investigation-into-comcast-nbcuniversal-dei-efforts [2] Source: https://www.reuters.com/business/media-telecom/verizon-to-end-diversity-equity-inclusion-programs-as-it-seeks-fcc-approval-for-frontier-deal-2021-07-08/ [3] Source: https://www.fiercetelecom.com/telecom/t-mobile-drops-diversity-equity-inclusion-initiatives-after-fcc-pressure [4] Source: https://www.washingtonpost.com/business/2021/07/08/fcc-chair-brendan-carr-t-mobile-verizon-diversity-equity-inclusion/ [5] Source: https://www.washingtonpost.com/technology/2021/07/08/t-mobile-diversity-equity-inclusion-initiatives/
- In adherence to the FCC's new regulations, T-Mobile has discontinued all its diversity, equity, and inclusion (DEI) initiatives and removed any references to these programs from their training materials and websites.
- Verizon, too, agreed to end its DEI programs as a requirement for securing FCC approval for its $20 billion acquisition of Frontier Communications, signifying a shift in business finance practices due to the FCC's stance against DEI policies.
