On Thursday, the Justice Department approved Verizon Wireless’ $3.9 billion purchase of spectrum from Comcast and other cable companies. After the DOJ ruling, FCC Chairman Julius Genachowski urged his agency to approval the deal as well. Verizon won approval, but it must follow a few restrictions that’ll prevent Verizon from getting too cozy with cable companies.
The amended deal requires Verizon to build out LTE on the new spectrum within 7 years, and the company must offer roaming to competitors at a reasonable rate. Verizon will also end its joint marketing agreement with the cable companies by 2016. This agreement let Verizon sell bundles that included both cellular and cable service. Another condition requires Verizon to sell some spectrum to T-Mobile. In the end, the cable companies get some cash for their unused spectrum, and both Verizon and T-Mobile get the wireless assets they so dearly need.
[Via Wall Street Journal]