LTE News: FCC Approves Verizon $3.9 Billion Acquisition of 4G Spectrum
By Karla Robinson
August 27, 2012
August 27, 2012
- Although it still has to be approved by a federal judge, Verizon’s $3.9 billion acquisition of 4G spectrum from various cable operators just cleared a big hurdle, getting the green light from the FCC.
- Verizon stands to gain 20 MHz of Advanced Wireless Services (AWS) licenses from Comcast, Time Warner Cable, Cox Communications and Bright House. The wireless carrier will use the new spectrum to build out “a supplementary high-capacity LTE network parallel to its current near-nationwide 4G infrastructure,” explains GigaOM.
- However, in order to get FCC approval, Verizon had to commit to selling a good portion of its new AWS licenses to T-Mobile as well as selling any unused 700 MHz spectrum.
- The FCC tacked on two additional requirements before giving the deal its stamp of approval. “The big one is a requirement that Verizon open its LTE network to roaming partners, a key demand of rural operators. The second is that Verizon complete 70 percent of its network over the new bands. While billed as concession to the FCC, it seems more like a concession to Verizon,” the article states.
- An added win for Verizon; “the approval implicitly gives Verizon and its new cable buddies permission to divide the wireline and wireless markets between them. The cable companies will resell Verizon’s mobile service, and Verizon can now sell cable broadband and TV service in any area where it doesn’t offer its FiOS fiber-to-the-home connections,” GigaOM reports.
- This collaboration could potentially hurt competition, and without wireless pressure on cable providers, there could be less incentive to regularly improve the infrastructure.
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