Interest Groups Opposed Deal as Proposed
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The spectrum sale and the concurrent commercial
agreements were strongly opposed by a number of public interest groups
concerned that the result would be monopolies on broadband, and the elimination
of broadband competition. Currently, Verizon provides DSL service to its
customers and provides the FiOS fiber broadband service in some areas of the United States.
The Communications Workers of America, the union that represents many of Verizon's
landline workers, was worried that the deal would mean the loss of jobs for its
members. "The FCC's decision allowing Big Cable to
virtually monopolize wireline and video connections to millions of homes will lead
to job loss and hit consumers with higher prices," said CWA spokesman Chuck
Porcari in a prepared statement. "It will slam the door on our country's high
speed future because it has destroyed any incentive for Verizon to continue the
build out of its high speed FiOS network."
"It is clearly an example of the FCC, just as the
Department of Justice did last week, acting on behalf of corporate interests,
not the public interest and clearly not jobs," Porcari added. He noted that the
conditions contained in the DoJ consent decree and included in the FCC order
were "weak."
The Alliance for Broadband Competition, which had previously
opposed the Verizonâcable spectrum deal, was somewhat more satisfied with the
conditions placed on the sale. "Our alliance of competitive carriers, trade associations, public interest groups,
and other entities continue to have deep concerns about the future of the competitive
communications landscape," an Alliance spokesperson said in a statement
distributed to the press. "While the FCC's Order does not go far enough to
ensure a competitive landscape, we are pleased that the Order addresses some of
the concerns that we have raised with the Commission over the past several
months."
T-Mobile CEO Jim Alling expressed his company's satisfaction with the deal in an email
to eWEEK. "T-Mobile is delighted that the Federal Communications Commission has
approved our AWS (Advanced Wireless Service) spectrum transaction with Verizon
and we applaud Chairman Genachowski, the other Commissioners, and the FCC staff
for their leadership and support on this matter," Alling said. "The combination
of these new spectrum resources with our existing assets will add capacity and
enhance performance of the T-Mobile network in many areas of the country as we
turn on LTE services in 2013 to meet the growing consumer demand for mobile
broadband services."
Verizon Wireless President and CEO Dan Mead provided a
brief prepared statement to the press saying, "This purchase represents a
milestone in the industry and we appreciate the FCC's diligent work to review
and approve the transaction," Mead's statement said. "We will work aggressively to ensure that we
put this previously unused spectrum to use quickly to benefit customers." Mead did
not respond to eWEEK's request for additional comment.
The spectrum sale, which an FCC spokesperson said was "the most
complex transaction ever reviewed by the Commission," was first announced in
December 2011, pending DoJ and FCC review.
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.
