Verizon Wants Government Help For Rural Partners
Oct 6, 2010, 11:27 AM by Philip Berne
Verizon Wireless wants the FCC to offer Universal Service Fund cash to rural carriers that sign licensing and roaming agreements with The Network. The Universal Service Fund is meant to provide telecommunication service, including high-speed LTE networking, to underserved, rural areas. Verizon Wireless is building out its LTE network and wants to license LTE spectrum space to rural carriers. Verizon and the rural carriers would then build the LTE network either separately or together, depending on the agreement, and the rural carrier would sell the LTE service locally. Verizon would then sign roaming agreements with the carrier.
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Sounds sketchy to me, abuse of government grants.
Verizon is asking the government to subsidize the build out towers and networks for small rural carriers so they don't have to personally invest any substantial money into their own personal network.
Since they don't actually own the towers, maintenance will be performed by the local companies and will not be the responsibility of Verizon Wireless.
Essentially Verizon is asking the government to foot the bill of their network expansion in the name of small carriers.
Sounds really really really sketchy to me.
I can't help but wonder why Verizon is doing so much to help small cellular companies. This one also clearly benefits Verizon, but shifting away from handset exclusivity is a little more difficult to explain.