Verizon Keeps Mum on Opponents Cartel Claims

By Wayne Rash  |  Posted 2012-05-22 Print this article Print


Then, Verizon uses the words of T-Mobile€™s own parent company against it. €œIn fact, the only €œnews€ here is the odd disconnect between T-Mobile€™s regulatory arguments and the business presentations of its parent company, Deutsche Telekom AG. Twice in the last two weeks, Deutsche Telekom€™s chief financial officer has relayed to investors the company€™s optimistic view of T-Mobile€™s future in the U.S. market:

  • €œ[W]e will have an LTE [Long-Term Evolution] offer, which is competitive enough with all the players in the U.S. market and will  be launched next year.€
  • €œAnd by the way, at the end of the day for almost every market, we have two times 10MHz of LTE. This is giving us a clear path until 2017, 2018, whatever projection you might take with regards to data consumption on a standalone basis.€
  •  €œ[T]he Android market is growing nicely here in the U.S., as well. We could tap this potential. We have an empty network. We have fiber links in the backhaul. So therefore, we could really play with this capacity. And we know how huge this uptick, this growth of data is in the U.S. market. So therefore we have a clear challenger strategy as we call it here for the U.S. market.€
  •  €œThere is no need for us to enter into any kind of deal€ through at least 2018.
Then the Verizon filing suggests that T-Mobile is using the regulatory process to gain competitive advantage, and suggests that T-Mobile€™s arguments are, at best, made up. €œT-Mobile€™s regulatory advocacy is so different from its parent€™s view that one can only conclude it is misusing the regulatory process solely to impede a competitor€™s 4G plans or extract concessions.€

Furthermore, Verizon suggests that T-Mobile€™s PowerPoint presentation contains bogus data. €œT-Mobile€™s presentation recycles its time-worn arguments about the deal. Once again, T-Mobile handpicks particular bands it calls 'LTE spectrum' to concoct the argument that Verizon Wireless holds, or will hold, excessive amounts of spectrum.€

While suggesting that T-Mobile may have created some nice slides, Verizon€™s filing suggests all the company is really doing is diverting attention from real measures of network efficiency. €œT-Mobile€™s most recent €˜efficiency€™ argument is limited to one PowerPoint slide. That showing apparently is designed to present a pretty visual for regulators and, perhaps, to obscure that its claim rests on outlier assumptions divorced from any widely accepted industry efficiency standard or legitimate means to measure network capacity or efficiency.€

Verizon€™s statement that T-Mobile is relying on recycled versions of previously rebutted claims underscores the level of the attack against T-Mobile. €œThey have been unable to establish any legitimate basis to deny or condition the proposed license Assignments,€ Verizon says in its closing statement.

So far T-Mobile hasn€™t responded to Verizon€™s latest round of charges, which is expected since creating an ex parte filing takes a few days.

While Verizon has made some strong arguments against T-Mobile€™s opposition to its application to buy spectrum from Comcast, Cox, Time Warner and other cable companies, it has not addressed the overarching complaint of the Alliance members that the company is trying to create an Internet cartel. Partly, this is because Verizon is focusing its argument on what is probably the most credible opposition and partly because some of the other filings by Alliance members have yet to fully address the issue of Internet access control by a Verizon-led cartel.

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Wayne Rash Wayne Rash is a Senior Analyst for eWEEK Labs and runs the magazine's Washington Bureau. Prior to joining eWEEK as a Senior Writer on wireless technology, he was a Senior Contributing Editor and previously a Senior Analyst in the InfoWorld Test Center. He was also a reviewer for Federal Computer Week and Information Security Magazine. Previously, he ran the reviews and events departments at CMP's InternetWeek.

He is a retired naval officer, a former principal at American Management Systems and a long-time columnist for Byte Magazine. He is a regular contributor to Plane & Pilot Magazine and The Washington Post.

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