DoCoMo's Deal in Guam Challenged
DoCoMo’s proposed purchase of GUAMCELL and HafaTel is being opposed as it “presents a risk to national security.” A petition has been filed by Teleguam Holdings, but on the other hand Guam Governor Benigno R. Fitial has thrown “his full support” behind the plan saying that consumers stand to benefit from lower costs and better services. If the purchase went through DoCoMo would capture between 55% and 65% of combined market share on Guam for mobile radio and wireless phone services, according to the petition, filed with the US Federal Communications Commission.
An FCC approval of the transaction would make DoCoMo the dominant wireless provider on Guam and would be the first time a foreign government-owned company is permitted to become the dominant wireless carrier in a U.S. telecommunications market, according to GTA. It looks like DoCoMo has a long road ahead and perhaps the time and effort will exceed the $72m purchase price. Via: i-Mode Strategy