Most Read: Business

DJIA
0.13%
NASDAQ
0.7%
 Last Update: : AM 12/27/2014(NASDAQ&DJIA) |

World Markets from      

 

Other Market Data from      

 

Key Rates from      

 

Blog Contributors

Timothy B. Lee

Timothy B. Lee

Timothy B. Lee covers technology policy, including copyright and patent law, telecom regulation, privacy, and free speech. He also writes about the economics of technology. He has previously written for Ars Technica and Forbes. You can follow him on Twitter or send him email.

Brian Fung

Brian Fung

Brian Fung covers technology for The Washington Post, focusing on electronic privacy, national security, digital politics and the Internet that binds it all together. He was previously the technology correspondent for National Journal and an associate editor at the Atlantic. His writing has also appeared in Foreign Policy, Talking Points Memo, the American Prospect and Nonprofit Quarterly. Follow Brian on Google+ .

Andrea Peterson

Andrea Peterson

Andrea Peterson covers technology policy for The Washington Post, with an emphasis on cybersecurity, consumer privacy, transparency, surveillance and open government. She also delves into the societal impacts of technology access and how innovation is intertwined with cultural development.

Post Tech
About / Where's Post I.T.?   |    Twitter  |   On Facebook  |  RSS RSS Feed  |  E-Mail Cecilia
Posted at 09:00 AM ET, 05/29/2013

Sprint, SoftBank get clearance on national security concerns

Sprint and Japanese carrier SoftBank announced Wednesday that they have been granted approval for their merger from the Committee on Foreign Investment in the United States, after facing criticism from lawmakers about how foreign ownership of the U.S.’s third-largest wireless carrier might affect national security.

The companies said that they have signed a national security agreement with the government over the proposed $20 billion deal, and that CFIUS has found there are “no unresolved national security issues relating to the transaction.”

Lawmakers said they were concerned that SoftBank was closely tied to the Chinese government and that equipment in the company’s infrastructure might be compromised to facilitate cyberspying.

According to a filing at the Securities and Exchange Commission, Sprint and SoftBank will appoint an independent, voting member to its board who will serve as security director. This person, who must be approved by the government, will be charged with ensuring the agreement has been followed. He or she must have the appropriate security clearances and will be the government’s contact for all security-related issues.

The government will also have a right to approve and review certain Sprint vendors and service providers.

The agreement also includes some provisions dealing with Sprint’s planned takeover of a smaller carrier, Clearwire, which still requires approval from Clearwire’s shareholders. The government will have a one-time right to remove any equipment within the Sprint or Clearwire network by Dec. 31, 2016.

The Federal Communications Commission will now be able conduct an independent review of the proposed merger, having been asked to put its assessment on hold while the national security issues were considered.

Sprint and Softbank said in a joint statement that the companies anticipate they will close their deal by July 1, 2013..

Dish Network, which had run an ad campaign focused on worries about national security, also has a competing $25 billion bid for Sprint. As The Washington Post reported, CFIUS approval of the SoftBank proposal makes Dish’s offer less attractive because the proposed deal came later and faces potentially lengthy regulatory reviews.

By  |  09:00 AM ET, 05/29/2013

 
Read what others are saying
     

    © 2011 The Washington Post Company