Gov Set to Approve Verizon-Cable Deal With Conditions
The Federal Communications Commission and Department of Justice are prepared to approve Verizon Wireless's proposed acquisition of 122 AWS spectrum license from a consortium of cable companies, but only if those companies agree to major concessions. According to sources cited by Reuters, the FCC and DoJ will allow the spectrum purchase itself to proceed with minimal adjustments. However, the DoJ has grave concerns about the cross marketing agreements that are part of the proposal, especially those between Verizon and Comcast. Reuters' sources say the DoJ would force Verizon and the cable companies to modify the side deals heavily in order to gain approval. For example, the DoJ would not allow Verizon and Comcast to market one another's products in areas where Verizon offers its FiOS internet and television services. In other markets, the cross marketing agreement would only be allowed for a specific amount of time. The companies hope the proposal's review will be completed by the end of the month. Both the FCC and DoJ declined to comment on Reuters' story.