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Verizon Cable Deal Gets a Senate Hearing
Kohl Wants to Examine Anti-competitive Repercussions
by Karl Bode Wednesday 01-Feb-2012 tags: legal · business · cable · consumers · Comcast · Verizon FiOS
Responding to consumer advocate and competitor concerns that the new Verizon, cable industry deal could include some anti-competitive conditions (hey, we won't install new FiOS in your markets if you let us sell wireless to your customers and sell us spectrum), Senator Herb Kohl has announced a new hearing looking into the deal. Kohl, who is Chairman of the Antitrust, Competition Policy and Consumer Rights subcommittee, says the hearing will take place after February 23. The hearing will focus on whether the deal could pose problems for residential broadband. Says Kohl:

"Plans are well underway for a hearing to examine the impact of Verizon’s spectrum purchase from a number of cable companies and a separate marketing agreement to cross-sell each other’s products,” Kohl said in a release. “The subcommittee carefully examines questions about competition in the wireless and video markets, with the ultimate goal of protecting consumers and reducing their cable and cell phone bills, and these deals are no exception."

If there are any anti-competitive arrangements included in the deal, you can be fairly sure that neither Comcast or Verizon attorneys allowed them to be put into writing. Though maybe not sexy on the surface, the deal has huge ramifications for smaller telcos who already compete with Comcast, especially if Verizon follows through on trials and pushes into residential fixed LTE.

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Premium
join:2002-03-03
Longport, NJ
kudos:5

Doesn't Comcast already compete with small telcos?

In the Comcast footprint one of the big sellers has been their VOIP phone product. So, anywhere that Comcast and these small landline telcos have coverage in the same areas, Comcast is already beating their brains in. How will a deal with Verizon Wireless make any appreciable difference?
25139889

join:2011-10-25
Toledo, OH

Re: Doesn't Comcast already compete with small telcos?

yes they do. But if the Gov't does't let Cellco buy this spectrum the only thing that the MSOs have to do is lease it to them. And still create partnership. The gov't can NOT tell them who they can and can not partner with.
Automate

join:2001-06-26
Atlanta, GA

Re: Doesn't Comcast already compete with small telcos?

If the gov can tell Microsoft how they bundle and price their software then they can certainly tell duopolies how they can partner.
25139889

join:2011-10-25
Toledo, OH

Re: Doesn't Comcast already compete with small telcos?

selling is different than partnering. and id like to see the gov't tell VZW that; they'd toss them right back into court.

and their not duopolies. They have competition.
sonicmerlin

join:2009-05-24
Cleveland, OH
kudos:1

Re: Doesn't Comcast already compete with small telcos?

said by 25139889:

selling is different than partnering. and id like to see the gov't tell VZW that; they'd toss them right back into court.

and their not duopolies. They have competition.

Lol, right, tons of competition.

No, they're actually duopolies.

not cool

F$$$ u herb Kohl back off

Dolgan
Premium
join:2005-10-01
Sun Prairie, WI

Re: not cool

Go Herb! Stick it to the corporate bastards and their backroom deal!
chgo_man99

join:2010-01-01
Schaumburg, IL

so what awaits Clearwire

not that they loose MSOs and even Sprint. Will they come up with LTE in few years once their wimax gets shut down? Or will they pack bags and totally exit market?

noverizon

@verizon.net

NO to verizon's latest cash grab scheme

verizon's scheme is bad for consumers. The FCC and the Antitrust, Competition Policy and Consumer Rights subcommittee should completely REJECT verizon's latest scheme. Broadband like other forms of communications work better when there is open competition, making the product better and keeping prices in check. noverizon!

BF69
Premium
join:2004-07-28
Camden, TN

Re: NO to verizon's latest cash grab scheme

Sorry but these cable companies have ZERO interest in building out a wireless network and the government can't force them too. And it's stupid for the government to deny this deal and then say they need to take spectrum from broadcasters and give it to Verizon and at&t because ther is supposedly a shortage. Well if there is then why not let Verizon buy some that doesn't require getting rid of OTA TV?
BiggA

join:2005-11-23
EARTH

These guys are morons

They royally bungle up the spectrum auctions, but now they're complaining about Verizon buying spectrum so that it will actually be used to provide 4G LTE services instead of being squatted on by the cable companies?
BosstonesOwn

join:2002-12-15
Everett, MA

Re: These guys are morons

This is not rocket science. So let me spell this out.

They fear there was a undocumented back room anti competitive deal between the two companies. Which they are right to fear.
--
"It's always funny until someone gets hurt......and then it's absolutely friggin' hysterical!"
BiggA

join:2005-11-23
EARTH

Re: These guys are morons

So AWS spectrum sitting dark is more useful for competition than Verizon lighting it up with the nation's best built 4G LTE network?
BosstonesOwn

join:2002-12-15
Everett, MA

Re: These guys are morons

No, if unused the government should have the ability to pull the spectrum license and resell.

No one should be able to squat on the peoples airwaves.
--
"It's always funny until someone gets hurt......and then it's absolutely friggin' hysterical!"
BiggA

join:2005-11-23
EARTH

Re: These guys are morons

So they can wait three years for all that crap to happen and then Verizon can buy the spectrum? That totally makes sense.
tmc8080

join:2004-04-24
Brooklyn, NY
Reviews:
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bad enough..

I think it's bad enough that Verizon did a deal to acquire the Comcast wireless spectrum, but it's a WHOLE NEW LEVEL trying to put anti-competitive language in the payroll tax credit bill to destroy any chance of NEW wireless competition from sprouting up in Comcast and AT&T geographies-- espeically those that these companies have NO intention of upgrading wired networks in and for lack of a better word COMPETING BY INNOVATION rather than a race to see who can raise prices faster and keep the most customers!

1 bad act, is an anonomoly... (sell off less profitable geographies and unload debt)
2 bad acts, are a fools errand (price gouge on wireless and acquire more spectrum to compete in geographies previously screwed by selling off wireline to companies with massive debt shifted from Verizon's books to theirs)
3 bad acts, and you're screwed! (trying to shovel legislation down the public's throat to prevent wireless competition in lock-step with AT&T!!) Can't wait for the FCC and DOJ screwtiny this will bring it's wrath upon Verizon!

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