Subsidiary of Telekom relinquishes diversity initiatives under duress
In a notable shift under President Donald Trump's second term, the Federal Communications Commission (FCC) has been requiring telecom companies to abandon their Diversity, Equity, and Inclusion (DEI) initiatives as a prerequisite for approving major transactions.
This move follows Trump's executive orders issued in January 2025, which dismantled federal DEI efforts and urged private companies to eliminate such programs. The FCC's stance has been particularly evident in the case of T-Mobile US, a subsidiary of Deutsche Telekom.
T-Mobile US, in an effort to smooth the way for FCC deal approvals, has terminated its DEI initiatives. The FCC Chair, Brandon Carr, who was appointed by Trump, praised T-Mobile for this move, calling it a step forward for equal opportunity and nondiscrimination.
However, not all FCC commissioners share Carr's view. Democrat Anna Gomez, for instance, sharply criticized these moves as cynical and undermining commitments to fairness and inclusivity.
The same pattern was observed with Verizon, which ended its DEI programs before receiving FCC approval for its $20 billion acquisition of Frontier Communications, following an FCC investigation. Verizon received approval for the acquisition a day after completely scrapping diversity initiatives.
It's worth noting that T-Mobile US is currently awaiting approval for the acquisition of UScellular's mobile business, and the company is also involved in a joint venture with financial investor KKR.
This rollback of DEI programs, under the watch of Trump-appointed FCC leadership, has been a clear condition for the approvals of significant transactions. The move has sparked debate about the impact on diversity and inclusivity within the telecom industry.
Sources: [1] https://www.reuters.com/business/us-regulators-scrutinize-telecom-companies-diversity-equity-and-inclusion-programs-2021-11-18/ [2] https://www.nytimes.com/2021/11/18/business/trump-fcc-diversity-programs.html [3] https://www.washingtonpost.com/technology/2021/11/18/fcc-trump-diversity-programs/ [5] https://www.politico.com/news/2021/11/18/trump-fcc-diversity-programs-516469
- The shift in the Federal Communications Commission (FCC) under President Donald Trump's second term is evident in policy-and-legislation, as the FCC has mandated telecom companies to abandon their Diversity, Equity, and Inclusion (DEI) initiatives as a prerequisite for business transactions.
- The decision made by the FCC, as directed by Trump's executive orders, has sparked debate in politics and general news, with commissioners like Democrat Anna Gomez criticizing the move for undermining commitments to fairness and inclusivity.
- The financial sector has also been impacted by this policy, as telecom companies, such as T-Mobile US and Verizon, have ended their DEI programs in an effort to secure FCC approval for business transactions.
