Verizon Wireless’ attempt to secure 1.7/2.1 GHz (AWS) spectrum assets hit a snag as the Federal Communications Commission has asked the parties involved to provide more details on the proposed transaction.
The additional information relates to Verizon Wireless’ plans to potentially auction off current 700 MHz assets if the deals to acquire the AWS spectrum are approved. The proposal in front of the FCC is currently at day 96 of the 180-day timeline.
Among the details the FCC is requesting are Verizon Wireless’ current plans for the A- and B-Block 700 MHz spectrum licenses it’s proposing to sell, as the requirements for the original acquisition of those licenses called for a portion of those licenses to be built out by June 2013. The FCC is also asking that Verizon Wireless provide more details on the contingent nature of the 700 MHz spectrum sale in regards to winning approval for the AWS spectrum licenses.
The FCC noted that responses to those requests are due by May 22.
Opponents of the spectrum deal have noted that if it is approved Verizon Wireless will hold a solid lock on the nation’s AWS spectrum assets, which are seen as crucial in providing capacity enhancements to dense LTE deployments. Verizon Wireless is currently relying on its C-Block 700 MHz spectrum assets to quickly build out coverage of its LTE network that is set to hit 260 million potential customers covered by the end of the year.
There are also comments that the A- and B-Block 700 MHz spectrum licenses Verizon Wireless is offering to auction are currently of little value due to interference issues with television channels in the spectral vicinity. Verizon Wireless spent about $4.7 billion on the A- and B-Block 700 MHz licenses during the FCC auction in 2008.
Bottom Line: Verizon Wireless’ bold gamble to offer up 700 MHz licenses in “exchange” for approval of its pending AWS spectrum acquisitions has raised concerns at an FCC that has shown it’s not afraid to quash spectrum-based deals. During the recent CTIA event, FCC Chairman Julius Genachowski openly questioned spectrum crunch claims by carriers, showing that he was looking for more than superficial reasoning to approve such deals. This deal has powerful entities on both sides and is likely a long way from being decided.
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