Press Release
Free Press Calls for Careful Review of Verizon-Cable Deals
Contact: Timothy Karr, 201-533-8838
WASHINGTON -- On Monday, Verizon Wireless filed a statement with the Federal Communications Commission regarding its agreement to purchase prime wireless broadband spectrum licenses from cable operators Comcast, Time Warner Cable and Bright House.
When Comcast, Time Warner and Verizon Wireless initially announced the license sales, they touted the supposed benefits of agreements they had reached to resell each other’s services. In other words, Verizon Wireless plans to resell the cable operators' video and broadband offerings while the cable companies will be able to resell Verizon Wireless services to their customer base. Today's filing with the FCC provides no new details on the apparent scheme to divide the market between these giant cable and telephone companies.
On Friday, Verizon announced a separate deal to acquire similar licenses from Cox, yet another large cable operator. That separate transaction with Cox is not included in today's filing.
Free Press Policy Director Matt Wood made the following statement:
“Verizon Wireless and its newfound cable allies should stop hiding the ball. Today's filing provides some more details on the license deal that would strengthen the hand of what is already the nation's largest wireless provider. But the document sheds no light on the joint marketing deals that Verizon Wireless is forging with the cable cartel. There may be provisions within these deals that would reduce the participating companies' incentive to compete with one another as they work to resell each other’s products rather than rolling out their own services and battling for customers. Such cooperation all but ensures that consumers would have fewer choices and would have to pay higher prices for broadband, wireless and video services.
"Today's filing raises more questions than it answers. The FCC can and should review the entire transaction, as should the Department of Justice and congressional committees charged with protecting consumers and competition in these vital industries.
“Although Verizon is trying to evade government review, neither the spectrum sale nor the joint-marketing agreement would succeed as stand-alone deals. The FCC should review them both as it weighs the impact this deal will have on consumers and competition.”
When Comcast, Time Warner and Verizon Wireless initially announced the license sales, they touted the supposed benefits of agreements they had reached to resell each other’s services. In other words, Verizon Wireless plans to resell the cable operators' video and broadband offerings while the cable companies will be able to resell Verizon Wireless services to their customer base. Today's filing with the FCC provides no new details on the apparent scheme to divide the market between these giant cable and telephone companies.
On Friday, Verizon announced a separate deal to acquire similar licenses from Cox, yet another large cable operator. That separate transaction with Cox is not included in today's filing.
Free Press Policy Director Matt Wood made the following statement:
“Verizon Wireless and its newfound cable allies should stop hiding the ball. Today's filing provides some more details on the license deal that would strengthen the hand of what is already the nation's largest wireless provider. But the document sheds no light on the joint marketing deals that Verizon Wireless is forging with the cable cartel. There may be provisions within these deals that would reduce the participating companies' incentive to compete with one another as they work to resell each other’s products rather than rolling out their own services and battling for customers. Such cooperation all but ensures that consumers would have fewer choices and would have to pay higher prices for broadband, wireless and video services.
"Today's filing raises more questions than it answers. The FCC can and should review the entire transaction, as should the Department of Justice and congressional committees charged with protecting consumers and competition in these vital industries.
“Although Verizon is trying to evade government review, neither the spectrum sale nor the joint-marketing agreement would succeed as stand-alone deals. The FCC should review them both as it weighs the impact this deal will have on consumers and competition.”
