Remember that huge $3.6 billion spectrum deal Verizon tried to orchestrate with the cable companies (Cox, Time Warner, Comcast, and Brighthouse)? Well, after battling with T-Mobile, the FCC and Department of Justice for almost a year, the number one wireless provider in the United States is one step closer to getting its wish. The only thing in the way of Big Red right now is the DOJ, as the government still doesn’t trust them.
According to the Wall Street Journal reports, the government agency is specifically concerned with the cross-promotion aspect of the deal related to their wired broadband and television services. Honestly, this has always been their stance from day one — so at least they are consistent. The Justice Department feels that this Verizon deal is a ruse to cover up the fact that they (VZ) along with the cable guys, will not compete with one another once approved.
This is a bad deal for the consumer — I’ll tell you why. If the spectrum grab goes through (in its current state) it could impact what services are available to consumers and how much they cost. Moreover, it would be one less competitor to challenge the monopoly cable currently has with the distribution of television and internet.
In the end, Verizon will probably get the deal through, but only by agreeing to many concessions. For instance, the FCC is signing off on the deal because Big Red agreed to divest some of its AWS spectrum to T-Mobile, but it won’t be enough, as the DOJ still wants further concessions.
[via phonescoop]