The deal is positive for both parties, as Verizon gets some urgently needed spectrum, and the cable operators can book a nice profit. At the same time, the cable companies do not have to roll out their own mobile networks, as some other new entrants are trying, like cable operator Videotron in Canada and satellite TV provider Dish in the US.
Furthermore, the arch-rivals' wholesale cooperation will focus on areas outside Verizon's fixed-line footprint, where the companies can together offer quad-play packages (likely in four years at the earliest). It's an open question still though how they may work together in Verizon's footprint, where it already is in heated competition with Comcast.
For mobile operators hoping to partner with cable companies - such as Sprint, T-Mobile USA, LightSquared or Clearwire - the Verizon deal is a disappointment. Clearwire already works with Time Warner Cable and Bright House, but this is likely to come to an end. Sprint already ended a couple years ago its wholesale partnership with Comcast, Time Warner Cable and Cox Communications, when they're cooperation (through Pivot) broke down. AT&T is also no longer a cable partner, as it struggles to bring about its merger with T-Mobile USA (both the Justice department and FCC have rejected the deal).
The cooperation between cable and telecom incumbent is possible because Verizon Wireless operates nationally, while the overlap in the fixed networks of Comcast, TWC and Bright House on the one hand and Verizon on the other is limited. For other countries this wouldn't necessarily work. However, the deal does underline how difficult it is to try and build a new mobile network in a saturated market. Mobile-only providers remain potential partners for cable companies. Examples include O2 in Germany, which works with Kabel Deutschland, KBW and Unitymedia (Liberty Global). Parts of Vodafone, Deutsche Telekom, France Telecom and Telefonica could also explore this kind of partnership, especially if they only have limited fixed assets in a particular market. In the Netherlands, Vodafone and T-Mobile are in theory still candidates for working with Ziggo4, the joint venture set up by the leading cable companies there, Ziggo and UPC.
Conclusion: Verizon and the cable operators have made a good deal, while the rest of the market missed out. If cable companies in other countries want to enter the mobile market, they will also likely have to seek a similar partnership.
