Verizon Wireless’s proposed agreement with SpectrumCo and Cox to buy...
Verizon Wireless’s proposed agreement with SpectrumCo and Cox to buy the cable operators’ AWS licenses, while entering into new business arrangements, marks a key development in “the sad history of the failure of competition in local service under the 1996…
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[Telecom] Act,” the Consumer Federation of America said in a new paper, which it submitted to the FCC. “The local market has been reduced to two dominant wireline broadband service providers, one of whom [Verizon] also dominates local wireless service,” CFA said (http://xrl.us/bngaox). “Against the background of this very highly concentrated market, Verizon and the cable companies have proposed to declare a competitive cease fire between the two broadband wireline networks. Verizon will not extend it high capacity broadband network, rather it will market cable’s network. Cable will not enter the wireless market or use smaller wireless carriers to build a bundle of wireless and wireline service, it will use Verizon’s wireless service. Both parties give up the single best product they had to compete, taking a commission on the sale of the competitor’s product.” Thirty-two members of the House, all Democrats, sent the FCC and the Department of Justice a letter raising similar concerns about the effect of the Verizon/SpectrumCo agreements on telecom/cable competition. The agreements “appear to turn the promise of the” Telecom Act “on its head,” the letter said. The letter (http://xrl.us/bngaq3) was circulated by the Communications Workers of America. “Today’s letter makes it clear that there is strong opposition to the cross-marketing agreements in the Verizon/Big Cable deal in its current form,” said Debbie Goldman, CWA telecom policy director. “As it stands, the proposal represents a serious threat to consumers, particularly those in urban centers already facing a widening digital divide. Elected officials are right to be concerned, and we urge the FCC to take their concerns into account as they consider this deal.” Verizon Wireless “is confident that we have made a persuasive case that purchasing and bringing unused spectrum into the marketplace to meet the communications needs of millions of consumers is strongly in the public interest,” a spokesman said in response.