It’s not just AT&T and the Rural Cellular Association that are asking the FCC to help muck-up competing wireless carriers’ merger deals. Leap Wireless has asked the FCC to block the $28.1 billion Verizon-Alltel merger deal that would have Verizon becoming the top wireless provider in the US.
The merger between Sprint and Clearwire would give Sprint the necessary infrastructure and WiMAX-expertise to launch their nationwide WiMAX-based XOHM wireless broadband data network. And, it’s understandable that other wireless carriers, with their own 4G data networks at least 3 years out (or not even on the roadmap at this point), would move to keep Sprint from becoming the data-centric provider to be reckoned with in the US.
Likewise, Leap doesn’t want Verizon and Alltel to become an even larger force in the US wireless market. The Verizon and Alltel merger would drastically reduce competition in the US wireless industry. The merger would also, they claim, make it harder for Leap to negotiate wireless roaming deals in the US. Leap has roaming deals with both Verizon Wireless and Alltel, and claims that if the FCC doesn’t block the merger or start regulating wireless roaming deals, Leap would be left without wireless coverage in some parts of the country. Leap claims that this would leave some of their customer base without service.
Verizon, for their part, said it would honor any roaming deals that Alltel currently holds.
[Via: Reuters]