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Thursday, 23 February 2012 - Rivals blast Verizon's bid for cable airwaves |
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      Edition: U.S. Africa Arabic Argentina Brazil Canada China France Germany India Italy Japan Latin America Mexico Russia Spain United Kingdom Home Business Business Home Economy Technology Media Small Business Legal Deals Earnings Summits Business Video The Freeland File Markets Markets Home U.S. Markets European Markets Asian Markets Global Market Data Indices M&A Stocks Bonds Currencies Commodities Futures Funds peHUB World World Home U.S. Brazil China Euro Zone Japan Mexico Russia India Insight World Video Reuters Investigates Decoder Politics Politics Home Election 2012 Issues 2012 Candidates 2012 Tales from the Trail Political Punchlines Supreme Court Politics Video Tech Technology Home MediaFile Science Tech Video Tech Tonic Opinion Opinion Home Chrystia Freeland John Lloyd Felix Salmon Jack Shafer David Rohde Bernd Debusmann Nader Mousavizadeh Lucy P. 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In letters released this week, rivals Sprint Nextel Corp, T-Mobile USA and MetroPCS Communications Inc expressed concerns about the spectrum transfer. Deutsche Telekom AG's T-Mobile said in its letter to the Federal Communications Commission that the deals would result in "an excessive concentration" of spectrum holdings and are a defensive move to prevent smaller competitors from getting the airwaves. No. 1 U.S. carrier Verizon Wireless announced plans on December 2 to pay Comcast Corp and Time Warner Cable Inc $3.6 billion in a spectrum and marketing deal. Verizon reached a similar deal with privately held cable operator Cox Communications, worth $315 million, which was announced in mid-December. The FCC is reviewing whether the two deals are in the public's interest, while the U.S. Justice Department is probing the deal for any antitrust concerns. Verizon Wireless, a joint venture of Verizon Communications Inc and Vodafone Group Plc, has said it needs more spectrum to support increased consumer demand for videos and other services that soak up bandwidth. "We believe the spectrum purchase is in the public interest, addressing consumer needs, and putting spectrum to work to meet growing demand for 4G services," Verizon spokesman Ed McFadden said in response to critics. Wireless carriers have clamored for more airwaves to stave off a looming spectrum crunch. The growing use of wireless devices like Apple Inc's iPad tablet and Google Inc's suite of Android-powered smartphones has added to the urgency to find more airwaves. AT&T abandoned its bid to buy T-Mobile after the Justice Department sued to block the deal. AT&T had said it needed the acquisition to get more wireless spectrum to support increasing demand for wireless data. RIVAL CONCERNS T-Mobile argued in its letter to the FCC that the spectrum purchase would not bring near-term benefits to Verizon Wireless, as the company already owns similar spectrum that it has not yet put to use. "Rather, the principal impact of the acquisition would be to foreclose the possibility that this spectrum could be acquired by smaller competitors," the company said. The spectrum buy would be part of broader agreements to create a joint venture and allow the cable operators to resell Verizon's mobile service. Opponents of the transactions say they would mean that companies that are rivals in some businesses, like cable and Internet, would become allies in the wireless business. T-Mobile and MetroPCS said in their filings that the agency should deny Verizon's spectrum deals, and Sprint asked for a careful evaluation of all the implications. The deals "would result in widespread collaboration and cooperation between providers of the only two wireline ecosystems in vast parts of the country," Sprint said in its filing to the FCC. Lawmakers are also scrutinizing the deals, although they have no official role in the review. The Senate Judiciary subcommittee on antitrust, competition policy and consumer rights is holding a hearing on March 21 to consider whether the deals pose a threat to competition and consumers. (Reporting By Jasmin Melvin; Editing by Tim Dobbyn) Tech Media iPad Related Quotes and News Company Price Related News Tweet this Link this Share this Digg this Email Reprints   We welcome comments that advance the story through relevant opinion, anecdotes, links and data. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. For more information on our comment policy, see http://blogs.reuters.com/fulldisclosure/2010/09/27/toward-a-more-thoughtful-conversation-on-stories/ Comments (0) Be the first to comment on reuters.com. Add yours using the box above.   Edition: U.S. Africa Arabic Argentina Brazil Canada China France Germany India Italy Japan Latin America Mexico Russia Spain United Kingdom Back to top Reuters.com Business Markets World Politics Technology Opinion Money Pictures Videos Site Index Legal Bankruptcy Law California Legal New York Legal Securities Law Support & Contact Support Corrections Advertise With Us Connect with Reuters Twitter   Facebook   LinkedIn   RSS   Podcast   Newsletters   Mobile About Privacy Policy Terms of Use Copyright Our Flagship financial information platform incorporating Reuters Insider An ultra-low latency infrastructure for electronic trading and data distribution A connected approach to governance, risk and compliance Our next generation legal research platform Our global tax workstation Thomsonreuters.com About Thomson Reuters Investor Relations Careers Contact Us   Thomson Reuters is the world's largest international multimedia news agency, providing investing news, world news, business news, technology news, headline news, small business news, news alerts, personal finance, stock market, and mutual funds information available on Reuters.com, video, mobile, and interactive television platforms. Thomson Reuters journalists are subject to an Editorial Handbook which requires fair presentation and disclosure of relevant interests. NYSE and AMEX quotes delayed by at least 20 minutes. Nasdaq delayed by at least 15 minutes. For a complete list of exchanges and delays, please click here.

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