Opposition to Verizon Wireless’ attempt to acquire spectrum assets from a group of cable companies appears to be growing as a number of wireless operators and trade groups have filed petitions to block the transactions.
The most interesting opposition came from T-Mobile USA, which reportedly filed a petition with the Federal Communications Commission asking that the government block Verizon Wireless’ attempt to acquire spectrum assets from Comcast, Time Warner Cable, Bright House Networks and Cox claiming the deals would concentrate spectrum assets in Verizon Wireless’ control. T-Mobile USA was recently forbidden from being acquired by AT&T following protests that the deal would remove a vibrant competitor from the marketplace.
Other operators, including Sprint Nextel and MetroPCS, filed more subtle comments proposing that the FCC look very closely at the transactions. This could be due to the fact that both operators are likely in the market themselves to acquire spectrum assets.
The Rural Cellular Association and the Rural Telecommunications Group also both filed comments with the FCC asking that the deals be halted citing fears that Verizon Wireless was attempting to corner the market on spectrum holdings as well as eliminating potential new entrants into the mobile space.
“In the absence of any near term FCC spectrum auctions, Verizon Wireless is systematically attempting to corner the market for commercial mobile wireless spectrum while simultaneously stripping existing and potential competitors of all their spectrum holdings,” stated RTG’s general counsel Carri Bennet “This practice is anticompetitive and a violation of antitrust law and should result in the FCC’s denial of all of the applications filed by Verizon Wireless.”
RTG also claimed that Verizon was in violation of the Sherman Antitrust Act.
“Verizon Communications and Verizon Wireless, together, are taking an unprecedented step to reduce choice for American consumers in the video, broadband and wireless markets. Rural markets and rural consumers will be impacted along with urban markets if these transactions are approved,” noted Bennet. “By concealing the facts through confidential, highly redacted documents, Verizon Communications and Verizon Wireless are ensuring that the public cannot participate in the process leaving millions of consumers, including those living in and traveling to rural America, in danger of higher prices and less choice.”
RCA President and CEO Steve Berry voiced its organization’s objections to the proposed deals, noting they would only exacerbate the growing duopoly of Verizon Wireless and AT&T Mobility. Berry advised that the FCC enact new guidelines in order to better predict the impact such deals could have on the competitive balance of the market.
“To effectively and accurately evaluate the potential competitive harms of the proposed transactions, the commission must adopt a new paradigm – the current spectrum screen is outdated and broken,” Berry said in a statement. “The FCC should take a fresh approach to its competitive analysis to more accurately determine current availability of wireless spectrum on a nationwide basis. For example, when evaluating spectrum transactions, the FCC should consider the different values of spectrum based on propagation characteristics or consider adopting a screen that is different for dominant carriers like the Twin Bells. Spectrum is the lifeblood of the wireless industry, and competitive carriers must have access to usable spectrum to compete in the marketplace and meet the ever-increasing consumer demand.”
The FCC had previously adjusted the deadline for filing comments on Verizon Wireless’ proposed spectrum deals, but added that the alignment was not an attempt to coordinate or link the consideration of those proposed deals.
Bored? Why not follow me on Twitter?
