Laura Phillips, partner at Drinker Biddle & Reath in Washington, D.C.

The Federal Communications Commission announced Thursday that it is shuttering a majority of its operations during the partial federal government shutdown, and companies that are waiting on FCC approval for license applications will be delayed indefinitely, both by the shutdown and the backlog that will inevitably result.

The 180-day clock on mergers also has been paused, putting the T-Mobile/Sprint merger on hold as well, said Laura Phillips, a telecommunications lawyer and partner at Drinker Biddle & Reath in Washington, D.C., and chair of the firm's government and regulatory affairs practice group.

Phillips said that approximately 1,200 employees have been furloughed and the agency would continue operating with a minimum staff, which includes its chairman and commissioners. “There isn't a lot [that] the commissioners sitting on the eighth floor of the FCC building can do,” she said.

Phillips said the biggest issue for many companies will be licensing applications.

“For companies with projects that rely on FCC licensing, it will have a very immediate effect on their business,” she said.

Companies faced with an emergency, such as if a radio tower were knocked over by a tornado, would be able to get emergency help. But companies in the process of opening a new radio station, on the other hand, will have to wait to apply for their license.

When the FCC is fully operational, something like an application for a private radio license, assuming there are no irregularities, would normally take the FCC about a week to review and approve. Now, Phillips said, there is no telling on what kind of backlog FCC employees will have once they get back to work.

She also said that by shuttering its doors, the mergers clock has been paused, and that means that the T-Mobile/Sprint merger has been put on  hold.

“T-Mobile is not happy,” she said.

She explained that the FCC has an informal “shot clock” of 180 days to consider and decide on a merger.

Phillips said that during the 2013 shutdown, the FCC's website's search function was taken offline and practitioners weren't able to look up historical documents.

“As a practitioner, it was a relief to see that a lot of historical documents are still online,” Phillips explained. “Now you have free time to do that deep dive and get yourself prepared for the next big thing.”

The shutdown has been ongoing since 12:01 a.m. Dec. 22, and according to the Washington Post, has been the longest shutdown since the partial shutdown of the federal government in 2013.

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