Lawmaker calls for extensive conditions to VZW acquisition of RCC

Sen. Bernie Sanders (I-Vt.) said he has serious concerns with Verizon Wireless’ $2.67 billion purchase of Rural Cellular Corp., telling Federal Communications Commission Chairman Kevin Martin the transaction should not go forward unless the No. 2 mobile-phone carrier agrees to what appears to be unprecedented conditions in the lawmaker’s home state.
RCC, which is marketed as Unicel, provides service to 716,000 customers in 15 states in the Midwest, Northeast, Northwest and the southern regions of the United States.
“If the Verizon Wireless-Unicel acquisition is approved, Verizon Wireless would become a de facto monopoly in the state of Vermont,” stated Sanders in an Oct. 29 letter to Martin. “Beyond the antitrust implications, the creation of a monopoly provider, absent any obligation or enforceable commitment on the part of Verizon Wireless to extend 100% geographic coverage in Vermont, will likely leave large tracts of the state with unreliable coverage or none at all for the foreseeable future.”
In addition to being required to provide 100% geographic coverage of Vermont within 30 months, Sanders wants a commitment from Verizon Wireless, a CDMA carrier, to maintain, upgrade and expand Unicel’s GSM network indefinitely. Sanders said Verizon Wireless agreed only to support Unicel’s GSM operations in the state for 18 months.
Under another option outlined by Sanders, Verizon Wireless would have to sell GSM network and spectrum assets to another service provider. Sanders called for a free exchange of Unicel’s customers’ phones for comparable Verizon Wireless handsets. The lawmaker also is seeking an enforceable commitment from Verizon Wireless to provide automatic roaming services at reasonable rates for voice and data-including wireless broadband-to other GSM or CDMA carriers.
“We understand both the DoJ [Department of Justice] and FCC are reviewing our acquisition, just as they reviewed” other wireless transactions, said Jeffrey Nelson, a spokesman for Verizon Wireless.
Verizon Wireless announced earlier this year plans to buy Rural Cellular.