Verizon's Spectrum Deal with Comcast May Go Through, but Has Some Tough Hurdles

[dgstorm]

Since December, Verizon and Comcast, the two largest wireless and wired carriers of their kind, have been negotiating with the U.S. Government to secure a spectrum licensing agreement. Basically, Verizon wants to be additional spectrum from Comcast, and the two companies will in exchange begin marketing each other's products. The transaction has faced intense regulatory scrutiny, and has several critics. In the latest development, it appears that the U.S. Justice Department and the FCC are prepared to sign off on the deal, but only if some very strict measures are put in place to reduce the possibility of either company monopolizing their respective market.

Because the DOJ has significant concerns about the anticompetitive potential of certain parts of the deal, it seems there are still some tough hurdles to be overcome. Here are some details in a quote from Reuters,

The additional spectrum would give Verizon Wireless a bigger edge over competitors as they struggle to meet consumer demand for videos and other data-heavy services. Verizon Wireless is owned by Verizon Communications (VZ.N) and Vodafone Group Plc (VOD.L).

Negotiations with the Justice Department's Antitrust Division have been bruising, focusing on plans by Verizon Wireless and Comcast, the biggest mobile carrier and the biggest cable company, respectively, to market each other's products.

There has also been concern about a plan for a joint venture to develop new technologies, such as one to allow consumers to move seamlessly between wired and wireless hookups. Critics say it could create cutting-edge products only available to the consortium.

The path that the talks are on would lead to a consent decree that would forbid the cross marketing agreement where Verizon markets its FiOS product, according to the three sources, who were not authorized to speak on the record.

Cross marketing in the rest of Verizon's footprint and the joint research and development project would be allowed but only for a limited period of time, the sources said.

The biggest concern is that the agreement could create cutting-edge products only available to the consortium. If these tweaks to the agreement can be met, then it looks like the potential for that is reduced greatly and the deal will progress forward.

Source: Reuters

 

[Big Ry]

NOOOOO!!! Don't partner with Comcast! They are the absolute worst company on the face of this earth!!!

Sent from my Galaxy Nexus using Tapatalk 2

 

[antipickle]

NOOOOO!!! Don't partner with Comcast! They are the absolute worst company on the face of this earth!!! Sent from my Galaxy Nexus using Tapatalk 2

. . . apart from verizon the company that believes they have the right to edit the internet because they provide it to you

 

[obxsalvo]

. . . apart from verizon the company that believes they have the right to edit the internet because they provide it to you

Sounds like Obama might have some stock in Verizon :blink:

 

[obxsalvo]

Sorry double post was kinda hung uuup

 

[kodiak799]

I have both...and I love my Xfinity tv. Can't wait for some special offers.

 

[droidbionicmaster]

NOOOOO!!! Don't partner with Comcast! They are the absolute worst company on the face of this earth!!!

Sent from my Galaxy Nexus using Tapatalk 2

Hahahaha. No way. I have metrocast they are by far the worst cable company on earth. I'd take comcast over metrocast and day

 

[trestevenson]

I had internet service through Comcast from 2001 - 2007, and I hated every minute of it. There really wasn't any alternative provider in my area at the time, and they throttled the hell out of my connection for a number of years. I feel like those bastards owe me money, and I'll never use them again if I can help it. If they sign a spectrum deal with Verizon, I can only imagine the shenanigans that will ensue. The two largest companies in their respective markets teaming up seems like bad news for the competition, and subsequently the consumer.

 

[Big Ry]

Hahahaha. No way. I have metrocast they are by far the worst cable company on earth. I'd take comcast over metrocast and day

Not the worst cable company... the WORST COMPANY. No sense in getting into it, but if Verizon partners with them, Verizon should expect a bill from Comcast that's 4x what they expected, has extra "features", and the only way to correct it is to call Comcast and wait on hold for 6 hours every day for 3 months. Comcast makes apple look like Jesus Christ.

Sent from my Galaxy Nexus using Tapatalk 2

 

[GotnFX]

I've had comcast internet from 2000 until July of this year...The reason I went with them is because I had bought a modem at best buy and started service through them..Twice now they tried telling me I have a rented modem...proved them wrong 8 years ago and asked is this resolved now and they told me yes..now I go to shut service off and they bill me for a non returned modem...Going over the same thing all over again..never going back to them or their internet partners Insight...