Justice Department approves Verizon's $3.9 billion spectrum deal

By on August 17, 2012, 4:30 PM

Verizon Wireless is one step closer to finalizing a deal to purchase up to $3.9 billion worth of wireless spectrum from Time Warner Cable, Comcast, Cox Communications and Bright House Networks. The US Justice Department gave the deal its stamp of approval although not without requiring some modifications to protect consumers from higher prices.

The Justice Department noted than an unaltered deal could ultimately hinder quality and result in higher costs. This all comes after an investigation by the Federal Communications Commission as to whether or not a transfer of spectrum would abide by antitrust laws. The FCC still has the final say-so before the deal is complete.

The deal, first announced by Verizon in December 2011, consists of 122 Advanced Wireless Services (AWS) licenses covering 259 million POPs that will allow them to expand service to more customers. Furthermore, cable providers will be allowed to market their products in Verizon retail stores with customers likely being offered discounts to bundle cable, Internet, home phone and cell phone usage into one package.

The Justice Department will also prohibit Verizon from selling TV and broadband services from cable companies in areas where Verizon already markets their own television and Internet service. A five-year limit will be placed on co-marketing agreements in other areas with parties being able to apply to extend the deal when it expires.

Verizon has also agreed to sell some of the spectrum to 4th ranked T-Mobile, a company that currently only has a limited amount of spectrum.




User Comments: 7

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VitalyT VitalyT said:

Corporate mafia in action. Money votes, the little man pays.

spydercanopus spydercanopus said:

The ministry of peace and arms has approved of a private contract with it's fascist State.

mevans336 mevans336 said:

"The Justice Department will also prohibit Verizon from selling TV and broadband services from cable companies in areas where Verizon already markets their own television and Internet service."

That part baffles me. You would think the DoJ would want to FORCE Verizon and the CableCo's to offer competing services in the same area.

Jim$ter said:

I always wondered if we didn't have cellular technology would be all have fiber to our homes by now. Seems like all these companies stopped caring about home broadband and only concentrate on cellular technology where they can be greedy and people are willing to pay. I can't wait till some wireless technology comes out..Like a WiFi highspeed service and everyone switches to that and puts these monopolies in there place! Oh wait...Verizon just bought all the remaining wireless space...so they can raise prices and guess what...we will pay because there is no alternative.

Renrew Renrew said:

Verizon is getting way too large. How kind of them to give a little crumb to T Mobile.

Their customer service is in the toilet.

Can you Say: "M-O-N-O-P-O-L-Y"?

Tygerstrike said:

Oh god it really makes me laugh when I see ppl posting words like Fascist ect. Its business plain and simple. How exactly is a cell phone company being fascist? Can you give a example of how Verizon is being Fascist?? You prolly cant as it seems you are using the word incorrectly. Heres a thought...DONT USE THEIR CELLPHONES OR SERVICE!!!

spydercanopus spydercanopus said:

Oh god it really makes me laugh when I see ppl posting words like Fascist ect. Its business plain and simple. How exactly is a cell phone company being fascist? Can you give a example of how Verizon is being Fascist?? You prolly cant as it seems you are using the word incorrectly. Heres a thought...DONT USE THEIR CELLPHONES OR SERVICE!!!

It's the State and corporations working together that is fascist, according to Benito Mussolini, who I think might be an expert on the subject.

And when you've finished reading about fascism and learned that the US and Euro zone lives in it, look up Internet etiquette and STOP YELLING.

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