Hello! And welcome to our Friday column, Worst of the Week. There’s a lot of nutty stuff that goes on in this industry, so this column is a chance for us at RCRWireless.com to rant and rave about whatever rubs us the wrong way. We hope you enjoy it!
And without further ado:
In case you hadn’t heard, Verizon Wireless is crazy for spectrum. Crazy!
Over the past six months or so, the nation’s largest wireless operator has announced approximately 42 spectrum deals, an amount that might not be factually correct, but is at least close enough for this column. These deals include swaps, barters, sales, transactions, agreements, purchases, haggles and exchanges.
The carrier has gone on record as saying most of these deals are attempts to “rationalize” its current spectrum hoard, while at the same time showing that it has no desire to warehouse spectrum. These deals are also designed to show that in spite of its overwhelming size and scale advantage, Verizon Wireless is in fact trying to open up the spectrum market for the good of its smaller “rivals.”
Why, just this week the carrier added to this list announcing a deal with T-Mobile USA that will see both carriers add to their respective spectrum holdings. A deal that just shows how sweet Verizon Wireless really is.
The best part is that most of these deals are all based on the carrier gaining regulatory approval for a couple of transactions. Those ultra-special deals were ones announced late last year with a handful of cable providers, affectionately known as SpectrumCo, cable provider Cox and wireless operator Leap Wireless. These deals were deemed unique in that they seem to involve Verizon Wireless gaining a whole bunch of licenses in the 1.7/2.1 GHz spectrum band, which those for a love of acronyms refer to as “AWS” spectrum. I have already laid out my reasons for avoiding this nomenclature.
These deals somewhat flew under the radar as they were announced at the same time AT&T’s eventually thwarted attempt to buy T-Mobile USA was being smothered. (It should be noted that AT&T had stated that its attempt to acquire T-Mobile USA was mostly due to its need to get its hand on more spectrum, and not an attempt to kill off a rival in the market. There was no mention of helping rivals.)
Once the AT&T/T-Mobile USA fiasco was finally nixed, opponents turned their attention to Verizon Wireless’ dealings and quickly mounted similar complaints about a large carrier trying to overpower the market. It really was an easy transition as all that needed to be done was to Wite-Out “AT&T” and insert “Verizon Wireless.” Easy-peasy.
However, perhaps taking a page from how terribly AT&T managed opposition to its T-Mobile USA acquisition attempt, Verizon Wireless went on the offensive by announcing several deals that would see the carrier offer up some of its precious 700 MHz spectrum assets to the highest bidder, as well as swap other spectrum assets with smaller rivals in a showing of its softer side.
From the outside this would appear to show that if regulators approve those deals, Verizon Wireless will then move forward with the agreements that show the carrier is not interested in warehousing spectrum and is in fact a good steward of the nation’s airwaves. Some might think that this could be an attempt by Verizon Wireless to influence regulators in approving those initial deals, which have so far garnered strong reaction from opponents.
Sure, the press release announcing the deal may say something like: “Since this agreement includes spectrum that will be purchased by Verizon Wireless in its transactions with SpectrumCo, Cox and Leap, this agreement is contingent on the closing of those transactions.” But, that does not mean that there is any pressure being exerted by Verizon Wireless on regulators to approve those deals, does it?
Not that there is anything wrong with Verizon Wireless attempting to re-align its spectrum holdings or in trying to see that regulators are informed about its intentions, but it would seem that the carrier might be going overboard in trying to convince regulators that these deals are in the best interest of the industry, while at the same time noting that these deals are only going to happen if regulators approve the most contentious of these proposed deals.
(This latest deal with T-Mobile USA also miraculously seemed to change T-Mobile USA’s opposition to Verizon Wireless’ myriad of spectrum deals, though I am going to assume there is no connection. Will wonders ever cease?)
You have to hand it to Verizon Wireless for its pro-active moves, but does it not seem like perhaps it’s trying to hard? Come on, you’re Verizon Wireless. It’s not like you are AT&T, which the name alone I believe still means monopoly.
All of this wheeling and dealing has done nothing more than continue to rile up opposition from at least those not involved in any of these deals and forced regulators to take a time out so that they can get a handle on everything that is happening.
Not that Verizon Wireless is in need of any advice, but maybe it might be wise to sort of settle down a bit. It looks like you are trying way too hard here, and for someone of your stature that is a bit unbecoming. Just play it cool for a bit and maybe everyone won’t be so suspicious of what you are really up to. Which is what again?
OK, enough of that.
Thanks for checking out this week’s Worst of the Week column. And now for some extras:
–Speaking of T-Mobile USA, nothing says you are doing good then to have your CEO abruptly leave and join the competition.
Luckily, T-Mobile USA is basically on auto-pilot at the moment and not in any need of any real leadership.
–While we are on the topic of life support, what the hell has happened to Research In Motion?!? This is a company entrusted with protecting our northern border from marauding polar bears, rabid seals and our precious sheets of ice for hockey, not to mention the e-mail of just about every company around the world. And, yet here we are watching RIM’s fortunes melt. Come on RIM, get your act together, eh!
–Google made a bunch of announcements this week, with some even related to the mobile space. However, this item might be the coolest, but is also leaves me the most dumbfounded.
I don’t even want to know how this connection works or will work, but whatever. Well done Google.
I welcome your comments. Please send me an email at dmeyer@rcrwireless.com.
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