Verizon Joins ATandT in Spectrum Protest
The two largest U.S. wireless carriers object to provisions imposed by the Federal Communications Commission on Harbinger Capital's acquisition of SkyTerra Communications. The FCC rules Harbinger must have agency approval before selling spectrum to AT&T or Verizon.Verizon Wireless has joined AT&T in objecting to the Federal Communications Commission's restrictions on Harbinger Capital Partners, a private equity firm which intends to sell spectrum for a nationwide, wholesale Long-Term Evolution network. The FCC, though, is requiring Harbinger to seek its approval before leasing capacity on the network to the "largest or second-largest wireless provider." Under the terms of the deal, AT&T and Verizon are forbidden from holding more than 25 percent of the spectrum.
Harbinger completed its acquisition of SkyTerra Communications March 29 in all-cash deal for $262.5 million. Harbinger hopes to build an LTE network using both terrestrial and