Remember when Verizon tried to buy unused spectrum from Comcast last year? The proposed deal triggered suspicion from regulators because of the fear of customers getting fleeced by two big companies working together. Well, today both utility giants are testifying before a Senate subcommittee, to hopefully persuade the government otherwise.
David Cohen, Comcast’s executive vice president made a feeble attempt at an argument: If you let us little guys work together, he says, we can take on the really big guys:
“By enhancing the Cable Companies’ and Verizon Wireless’s own products and services, the Joint Venture will compete with similar solutions that AT&T, Dish Network, Google, Apple, Microsoft, and others already have introduced into the marketplace. This, in turn, will spur other companies to respond, perpetuating a cycle of competitive investment and innovation.”
Hey, the man deserves some kudos for trying, right? Cohen’s notion that Comcast and Verizon are “little guys” is not only fatuous, but absurdly disingenuous. Truth is, a comment like this could potentially hurt the chances of the deal going forward. In the end, Comcast is perhaps the largest cable company in the United States, and their trying to team up with the largest wireless provider in the United States; this without a doubt will raise eyebrows.
We’ll see what happens after the 2 p.m. hearing wraps-up …