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Cox Sells Wireless Spectrum to Verizon
Also Signs Deal to Resell Verizon LTE Service
by Karl Bode 12:04PM Friday Dec 16 2011 Tipped by jchambers28 See Profile
In 2008's 700 MHz Advanced Wireless Services (AWS) spectrum auction, Cox Communications won 14 Block A and 8 Block B licenses for bids totaling $304 million. Unlike Time Warner Cable and Comcast, Cox wasn't content with piggybacking on Clearwire's network to offer the "quadruple play," and originally planned to build their own network. The original plan was to ride on Sprint's EVDO network, with Cox shifting users to their own LTE service as the build proceeded.

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However, Cox ultimately found the going rougher than expected, stating that it simply wasn't possible to jump into the existing wireless market and seriously compete with industry juggernauts AT&T and Verizon. As a result, Cox scrapped their "unbelievably fair" service last month, and began dismantling and selling their partially-completed network.

Today the company announced that just like Comcast, Time Warner Cable and Bright House, they've decided to sell their spectrum to Verizon Wireless. The company sold spectrum licenses covering 28 million POPs for $315 million in a deal that didn't include Cox's 700 MHz spectrum licenses, Cox Wireless customer accounts or any other assets.

Cox also struck a deal with Verizon to eventually resell Verizon LTE services to their cable subscribers as part of a quadruple play bundle. The customers Cox had previously signed up via their partnership with Sprint will be supported until March 30, 2012.

Also like Verizon's recently announced deal with other cable operators, Cox says they'll participate in future Verizon LTE and cable content collaborations "to better integrate wireline and wireless products and services." All major cable companies have formed what they're calling a "innovation technology joint venture" that will focus on integrating wireless and wireline services.

While AT&T has been playing pattycake with regulators over their T-Mobile deal, Verizon has placed themselves in the U.S. wireless market's driver's seat. Verizon had stated on the record they already had enough spectrum for LTE, and now they've given themselves additional leg room. The nation's largest carrier now offers LTE in 200 markets (compared to fifteen for AT&T), and their new cable partnership means a guaranteed flood of additional subscribers.

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Smokey
I'd rather be skiing
Premium
join:2003-05-20
Wild West

Right now, how about later?

While this might be a good move for Cox right now, I think in the long run they will regret the dealings with Verizon. Verizon will now have all the spectrum that they need to offered full video service via LTE in the markets served by Cox, many of which already have Verizon as a competitor.

Just another example of a cableco not being able to make a play for the future.
--
Para Bellum!!
openbox9
Premium
join:2004-01-26
Germany
kudos:2

Re: Right now, how about later?

Or, designing, deploying, and supporting a wireless network really is expensive and outside of Cox's core competencies. I doubt that this spectrum gives VZ that much of a leg up in competitive markets with Cox that the company doesn't already enjoy through its FiOS offerings.
ajwees41
Premium
join:2002-05-10
Omaha, NE

Re: Right now, how about later?

said by openbox9:

Or, designing, deploying, and supporting a wireless network really is expensive and outside of Cox's core competencies. I doubt that this spectrum gives VZ that much of a leg up in competitive markets with Cox that the company doesn't already enjoy through its FiOS offerings.

not all cox areas have Fios avalable
openbox9
Premium
join:2004-01-26
Germany
kudos:2

Re: Right now, how about later?

That only strengthens Cox's position.
BosstonesOwn

join:2002-12-15
Wakefield, MA
Reviews:
·Verizon FiOS
Welcome to the backdoor method of dealing in corporate america.

What this right here is is a gentlemans agreement for Verizon to not do video over lte, only communications.

You think they are handing the keys to the castle ? I doubt it.

Nothing more then a backdoor deal between them. This is probably what stopped the FiOS roll out. Verizons new CEO is a wireless guy and these dealings stink of him.

Im betting good money that Verizon will start selling even the profitable copper plants now, and then FiOS will be next.
--
"It's always funny until someone gets hurt......and then it's absolutely friggin' hysterical!"

FFH
Premium
join:2002-03-03
Tavistock NJ
kudos:5

Who is Cox selling 700 Mhz spectrum to?

quote:
The company sold spectrum licenses covering 28 million POPs for $315 million in a deal that didn't include Cox's 700 MHz spectrum licenses
I noticed that this deal with Verizon doesn't include Cox's more valuable 700Mhz spectrum. And since they won't be using it themselves, it brings up an interesting question - who will they be selling that to? Maybe AT&T when the TMO deal becomes officially dead?
--
The nine most terrifying words in the English language are, I'm from the government and I'm here to help.
»www.politico.com/rss/2012-election-blog.xml


jchambers28

join:2007-05-12
Alma, AR

Re: Who is Cox selling 700 Mhz spectrum to?

Only time will tell on that.
25139889

join:2011-10-25
Toledo, OH
could be T or could be TMO.

HaloFans

join:2006-12-18

Looks like Sprint got the short end of it.

COX will probably offer Verizon wireless bundles in the near future.

jchambers28

join:2007-05-12
Alma, AR
Reviews:
·Cox HSI
·AT&T Wireless Br..

Re: Looks like Sprint got the short end of it.

said by HaloFans:

COX will probably offer Verizon wireless bundles in the near future.

IMO Verizon has better coverage than sprint anyways.
openbox9
Premium
join:2004-01-26
Germany
kudos:2
Yes, that's what part of this deal is about. Sprint loses again. Anyone notice a pattern?
Skippy25

join:2000-09-13
Hazelwood, MO

Re: Looks like Sprint got the short end of it.

said by openbox9:

Yes, that's what part of this deal is about. Sprint loses again. Anyone notice a pattern?

Does this surprise you? They are a far distance behind the Verizon and ATT conglomerates.
openbox9
Premium
join:2004-01-26
Germany
kudos:2

Re: Looks like Sprint got the short end of it.

No. I've been suggesting a movement towards irrelevancy by Sprint for quite some time now.

trparky
Apple... YUM
Premium,MVM
join:2000-05-24
Cleveland, OH
kudos:2

Seems like Verizon Wireless is winning...

Seems like Verizon Wireless is winning the wireless spectrum war.

But let's look at the recent wireless deals that have succeeded and failed.

First... Verizon.
* Time Warner Cable, Comcast, and Brighthouse Networks sold a whole lot of AWS spectrum to Verizon (»Verizon Nabs Large Chunk of Cable Industry Spectrum)
* Cox Cable does the same.

All of these deals were successful deals that went through with not one hitch.

Second... AT&T LOL
They have spent a whole lot of cash lobbying their deal with T-Mobile to buy it. Many of the talking points for why the merger should happen have been proven to be false and that even with their massive lobbying machine they are finding it increasingly more difficult to grease this deal through Washington. More and more people in the financial world have been saying that this deal is dead. Not only that, but because AT&T has been concentrating so much of their attention on a failed T-Mobile deal, they have been being passed by by their competitors like Verizon. Even The Motley Fool have said that AT&T has lost its way.

AT&T said that they needed more spectrum to deal with the bandwidth crunches of 4G speeds, hence the deal with T-Mobile which has shown that more than likely it's not going to go through. Meanwhile, they've already spent a lot of money trying to get this deal through Washington instead of investing their money into their network.

Meanwhile, Verizon Wireless has been getting their additional spectrum through other means that have been shown to be far more acceptable than what their counterpart, AT&T, has been trying to do. Makes you wonder why the CEO of Verizon Wireless said that he was "not worried" about AT&T. Seems that him being not worried about AT&T is justified. They don't need to be worried about AT&T, however... AT&T should be worried about themselves because with this news about Verizon Wireless getting another batch of AWS spectrum, yeah... the fail boat has arrived and the captain is knocking on AT&T's door.

So who do you think is the smarter company? I'll give you a hint... it's not AT&T. LOL
--
Tom
Boycott AT&T uVerse! | Tom's Android Blog | GummyCharged Droid Charge ROM

FFH
Premium
join:2002-03-03
Tavistock NJ
kudos:5

Re: Seems like Verizon Wireless is winning...

said by trparky:

Seems like Verizon Wireless is winning the wireless spectrum war.

But let's look at the recent wireless deals that have succeeded and failed.

First... Verizon.
* Time Warner Cable, Comcast, and Brighthouse Networks sold a whole lot of AWS spectrum to Verizon (»Verizon Nabs Large Chunk of Cable Industry Spectrum)
* Cox Cable does the same.

All of these deals were successful deals that went through with not one hitch.

You are jumping the gun here. These deals still need FCC and DOJ approvals. While it is likely they may go thru unchanged, that isn't fact yet.
--
The nine most terrifying words in the English language are, I'm from the government and I'm here to help.
»www.politico.com/rss/2012-election-blog.xml


trparky
Apple... YUM
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join:2000-05-24
Cleveland, OH
kudos:2

Re: Seems like Verizon Wireless is winning...

More than likely it will with a minimum of effort on behalf of the cable companies selling the spectrum and Verizon buying it.

Compare that to the increasingly disastrous AT&T/T-Mobile deal... the Verizon/Cable Spectrum Deal looks like a done deal.
--
Tom
Boycott AT&T uVerse! | Tom's Android Blog | GummyCharged Droid Charge ROM

trparky
Apple... YUM
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join:2000-05-24
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kudos:2

Re: Seems like Verizon Wireless is winning...

Personally speaking... If I were an AT&T stockholder, I'd be calling for the CEO's head.

Smokey
I'd rather be skiing
Premium
join:2003-05-20
Wild West
They shouldn't need DOJ approval, as there is not an anti-trust element to the sale of the spectrum. They will need the FCC to allow it, and all they need to say is that the cableco's weren't going to use the spectrum, and Verizon will.
--
Para Bellum!!
jophan
Premium
join:2009-07-12
Jenkintown, PA

Re: Seems like Verizon Wireless is winning...

There could still be antitrust concerns, but it probably depends on the terms for wholesaleing the LTE service back to the cablecos. It's funny, though, that with most of the FCC's objection to the ATT/TM merger being loss of retail competition, this deal might actually give T a good legal basis for asking for reconsideration!

cchhat01
Dr. Zoidberg

join:2001-05-01
Elmhurst, NY
Reviews:
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·RCN CABLE
·Earthlink Cable ..

Please don't confuse the readers

AWS and 700Mhz are different. 2008 Auction was the 700 MHz auction. The 2006 Auction was the AWS (1700/2100 MHz) auction.

The fact that Cox won som 700Mhz apectrum in 2008 has nothing to do with it selling AWS spectrum to Verizon Wireless... As a matter of fact, Verizon wireless operates its LTE on 700 MHz and hasn't had any intent on deploying LTE on AWS. It has enough spectrum in 700 Mhz to deploy LTE.

I had to re-read to realize what is going on from the OP.
--
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Alex G Bell

join:2002-07-02
Boston, MA

Competition in a Pig's Eye?

The IBEW and CWA are wondering what else Verizon has agreed to with the cable companies as a part of these deals, as in possible labor agreements, and has asked Verizon to provide full disclosure. I personally wonder, can these deals pass the smell test for potential anti-trust violations?
--
"Remember, Comrade, people who are willing to destroy an efficient telephone system may not be playing with a full deck."