Comcast Said It Spoke With Virtually Every U.S. Wireless Carrier Before Striking the Deal With Verizon

By Michelle Maisto  |  Posted 2012-03-22 Print this article Print


"I don't think we've changed the goal [of 1996]. I think we've changed the tactics to be able to get to the goal," Cohen answered. He added that Comcast "engaged in discussions with virtually every wireless carrier in the nation" before striking the deal with Verizon.

Sen. Amy Klobuchar (D-Minn.) wondered whether the bundles could lock consumers into higher rates and result in less competition.

"No one is constrained to buying in bundles €¦ There's nothing to get from these bundles other than convenience or a discount of sorts that the consumer can choose or not choose," Randal Milch, Verizon executive vice president and general counsel, assured her.

Franken asked Joel Kelsey, a policy advisor with the Free Press, what the downside would be for consumers, should the deal go through.

"There is such a trend towards duopoly in the wireless market that would be exacerbated by putting close to a third of the nation's broadband spectrum, measured by value, into the hands of Verizon," said Kelsey.

Kelsey went on to liken the deal to New York State giving 80 percent of its farmland to two farmers€”and how the price of corn would naturally be expected to rise as a result. The state could step in to protect consumers, but that would be "a whole lot of government."

"We would rather," said Kelsey, "the FCC reject these deals in favor of more competition within the marketplace, and we think that there's a number of items before the commission that they could do to ensure that there are stronger competitors there."

The same day, the FCC, following its monthly meeting, seemed to pursue a few of these, announcing the formation of an Incentive Auction Task Force, led by Ruth Milkman, as well as a Notice of Proposed Rulemaking (NPRM) to "promote interoperability and encourage the efficient use of spectrum in the commercial Lower 700MHz band."

The NPRM, the FCC said in a statement, "explores possible next steps that the FCC should take to promote interoperability in the Lower 700MHz band should it find that there is limited or no harmful interference, or such interference can be reasonably mitigated through industry and/or regulatory measures."

The spectrum has been controversial, with smaller carriers arguing that larger ones can block certain of their devices from operating within the spectrum.

Steven Berry, president and CEO of the Rural Cellular Association, who was called as a witness in yesterday's Verizon hearing, said in a statement the RCA released the same day that he's pleased the FCC has taken up the NPRM.

"For over four years, rather than attempting to solve this spectrum-suffocating problem, AT&T has been allowed to develop its own private band plan, shutting out competition and harming consumers," said Berry. "The sooner this is resolved, the faster customers all across the country will have access to 4G LTE [Long-Term Evolution] devices and services."

Michelle Maisto has been covering the enterprise mobility space for a decade, beginning with Knowledge Management, Field Force Automation and eCRM, and most recently as the editor-in-chief of Mobile Enterprise magazine. She earned an MFA in nonfiction writing from Columbia University, and in her spare time obsesses about food. Her first book, The Gastronomy of Marriage, if forthcoming from Random House in September 2009.

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