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11:45 AM
Kaushik RC
The U.S. Rural Cellular Association (RCA) continues its long battle against Verizon Wireless' attempts to acquire mobile spectrum assets from a handful of cable companies. The association, which represents virtually every mobile operator outside of Verizon Wireless and AT&T Mobility, said that if approved, the deals would further limit competition across the mobile segment.
Verizon announced late last year a few plans to acquire 122 1.7 GHz and 2.1 GHz wireless spectrum licenses (also known as AWS spectrum) covering 259 million potential customers for $3.6 billion from a consortium of cable companies, including Comcast, Time Warner Cable and Bright House Networks.
The announcement was followed weeks later by an initial agreement between Verizon and Cox Communications to sell its 20 megahertz 1.7 GHz and 2.1 GHz spectrum holdings to Verizon Wireless for $315 million. Both agreements also included language that would allow the cable companies to resell Verizon's services in their respective markets.
A number of companies came out against the proposed transactions citing the possibility of concentrating valuable spectrum assets into the hands of a single operator.
Verizon announced late last year a few plans to acquire 122 1.7 GHz and 2.1 GHz wireless spectrum licenses (also known as AWS spectrum) covering 259 million potential customers for $3.6 billion from a consortium of cable companies, including Comcast, Time Warner Cable and Bright House Networks.
The announcement was followed weeks later by an initial agreement between Verizon and Cox Communications to sell its 20 megahertz 1.7 GHz and 2.1 GHz spectrum holdings to Verizon Wireless for $315 million. Both agreements also included language that would allow the cable companies to resell Verizon's services in their respective markets.
A number of companies came out against the proposed transactions citing the possibility of concentrating valuable spectrum assets into the hands of a single operator.
In its latest attempt, RCA President Steve Berry yesterday testified in front of the Senate Judiciary Subcommittee on Antitrust, Competition Policy and Consumer Rights reiterating its stance that the deals would be bad for competition. Berry explained that Verizon Wireless is already sitting on vast spectrum resources in the 700 MHz, 1.7 GHz as well as the 2.1 GHz band that are currently unused.
“This deal would transfer at least 20 megahertz of prime, unused, and nearly nationwide spectrum into the hands of a wireless carrier that already holds as much as 44 megahertz of unused mobile spectrum in many markets,” Berry said. “At the same time, many competitive carriers are approaching exhaustion of their current holdings. Verizon’s dominant control over other critical market inputs, including wireline backhaul, roaming for both voice and data services, and monopolize control over access to cutting-edge, interoperable devices, exacerbates this issue to the next level.”
Verizon Wireless is currently using a portion of its 700 MHz spectrum assets to support its LTE network, that has pushed past the 200 million covered potential customer mark. The wireless carrier has said that it expects to use the remaining 700 MHz and 1.7 - 2.1 GHz spectrum assets to further bolster that network and has opened up access to those spectrum assets to rural operators as part of its LTE in Rural America program.
In January 2012, the FCC aligned the comment cycle for the proposed transactions, but noted the move wasn't made in an attempt to link them together. The proposed transactions are currently at day 63 of the proposed 180-day time line.
“This deal would transfer at least 20 megahertz of prime, unused, and nearly nationwide spectrum into the hands of a wireless carrier that already holds as much as 44 megahertz of unused mobile spectrum in many markets,” Berry said. “At the same time, many competitive carriers are approaching exhaustion of their current holdings. Verizon’s dominant control over other critical market inputs, including wireline backhaul, roaming for both voice and data services, and monopolize control over access to cutting-edge, interoperable devices, exacerbates this issue to the next level.”
Verizon Wireless is currently using a portion of its 700 MHz spectrum assets to support its LTE network, that has pushed past the 200 million covered potential customer mark. The wireless carrier has said that it expects to use the remaining 700 MHz and 1.7 - 2.1 GHz spectrum assets to further bolster that network and has opened up access to those spectrum assets to rural operators as part of its LTE in Rural America program.
In January 2012, the FCC aligned the comment cycle for the proposed transactions, but noted the move wasn't made in an attempt to link them together. The proposed transactions are currently at day 63 of the proposed 180-day time line.
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