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The telecommunications industry is embracing the idea of a Trump administration.

President-elect Donald Trump's promises to reduce corporate taxes and to eliminate regulations have been welcomed by executives from an industry facing intense oversight. Four of the biggest players generate more than $340 billion in annual revenue from largely domestic operations.

"I think that it's very clear there's going to be less regulation," T-Mobile US Inc. Chief Financial Officer Braxton Carter said this week. "I think that it's hard to imagine that there's not going to be more openness to consolidation."

AT&T Inc. chief Randall Stephenson this week noted that the Federal Communications Commission has stopped moving ahead on passing several rules such as privacy oversight and business broadband pricing. Republican congressional leaders last month asked the agency to stop taking controversial regulatory actions until the new presidential administration is on board.

During the administration of President Barack Obama, the FCC has had two chiefs, both of whom have taken strong positions on everything from the open internet to merger review, often at odds with industry heavyweights. Two major wireless mergers were torpedoed by federal authorities in recent years.

Republican FCC commissioner Mike O'Rielly said Wednesday he was encouraged by Mr. Trump's comments about the "detrimental impact of the current stifling regulatory environment on the American economy."

"I particularly like his call for the elimination of two regulations for every new one created," Mr. O'Rielly said.

One key area for optimism is taxes. Verizon Communications Inc. chief Lowell McAdam this week expressed hope that the Trump Administration will be able to lower the corporate rate. "We are not planning on getting into the 15% range; that would be great if it did," Mr. McAdam said at the same conference.

AT&T's Mr. Stephenson, who has long pushed for changes in the corporate tax code, said that tax relief could increase capital investment across the economy and improve productivity.

AT&T has a lot on the line right now as a review of its proposed $85 billion Time Warner Inc. takeover begins, a deal that Mr. Trump addressed on the campaign trail as one he would block as president. Mr. Trump hasn't commented on his position since the election.

While the telecom market is dominated by huge national players, many smaller telecom companies depend on regulatory protections pushed by Democrats in recent years to help compete with their larger brethren.

"Traditional Republican telecom policy has favored incumbents who are heavily engaged in regulatory capture over innovators like us," said David Morken, the founder of two firms, Bandwidth.comand Republic Wireless, that use internet technology to offer low-cost phone service.

Mr. Morken is a lifelong Republican, but "every election I have to choose between voting personal conviction or business interests." Together, his companies employ about 500 people and generate more than $200 million in annual revenue.

Dane Jasper, CEO of Sonic.net, a Santa Rosa, Calif.,-based internet service provider said that Democratic regulators have acted to promote competition, but he had some hope for Republicans under Mr. Trump.

"It's not clear to me that a Republican-led FCC wouldn't also foster open competition," he said. "Perhaps the Republican ideals of free market will extend beyond the instinct to protect incumbents."

Mr. Jasper pointed out that the FCC under former President George W. Bush "dismantled competition" in favor of the traditional telecom companies. "I hope we don't see that again," he said.

Write to Thomas Gryta at thomas.gryta@wsj.com and Ryan Knutson at ryan.knutson@wsj.com

(END) Dow Jones Newswires

December 09, 2016 08:15 ET (13:15 GMT)

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