It looks like the FCC is scrutinizing a proposal by Verizon to purchase wireless spectrum and is reviewing the impact it could have on competition and licensing issues.
This week, the Federal Communications Commission asked Verizon, SpectrumCo (made up of Bright House, Comcast and Time Warner) and Cox – to provide the commission some details on the $3.9 billion deal.
Some of the questions posed relate to Verizon's plans to deploy LTE; how it is using other wireless spectrum; and its broader network plans, according to a report from The Wall Street Journal.
Another area of interest could relate to cross-selling of products. “Portions of the commercial agreements are inseparable from the proposed license transfer and related wireless competition issues,” FCC spokesman Neil Grace told The Washington Post.
It appears another part of the deal would let cable operators market or sell Verizon’s services. Also, cable operators would have “access to Verizon’s network at much cheaper rates, allowing them to sell wireless services under their own brands,” according to a report from MobileBloom.
MobileBloom also reported that the “marketing and redistribution potential” – sources tell them – “will be much more profitable in the future than the spectrum part of the deal.” Already, Verizon Wireless stores are selling Comcast cable service and Comcast stores are marketing Verizon cellphone plans, The Associated Press reported.
Companies like Sprint, DirectTV and T-Mobile USA and consumer advocates want to see more details on the deal. In a recent letter to the FCC, several companies, the Computer & Communications Industry Association and some consumer advocates called the deal “anticompetitive” – and predicted it could lead to “price increases” – and point out that “a wide variety of entities have expressed varying levels of concern about the potential impact of these transactions.”
“In combination with the proposed spectrum transaction, the Commercial Agreements will significantly enhance the Applicants’ competitive position in the broadband, wireless and video markets. Without the ability to review those agreements in full, interested parties would be unfairly deprived of the information they need to produce a complete portrait of the impact this transaction will have on the public interest and the Commission would be unnecessarily deprived of that input into its public interest determination,” the letter added.
However, Comcast claims the sale of spectrum would not lead to less competition, according to The Post. Verizon, on the other hand, says it needs additional spectrum to meet increasing customer demand, according to The New York Times. It cited data from Cisco, which estimated that mobile data more than doubled during 2011, according to The Times.
The controversy over the Verizon purchase brings to mind how federal regulators last year blocked a proposal by AT&T to buy T-Mobile USA for $39 billion. The FCC and Justice Department were both opposed to the deal because – they argued – of its potential negative impact on consumers, according to a report from MobilityTechzone.
The FCC will accept comments from the interested parties until March 26, according to The Journal. The deal, if approved, was expected to take place this year.
Edited by
Jennifer Russell 
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