Verizon wins approval for cable spectrum acquisition

News General United States 17 AUG 2012
Verizon wins approval for cable spectrum acquisition
Verizon has secured approval from the US Department of Justice for its acquisition of substantial spectrum holdings from cable companies, after agreeing to changes to its co-marketing of services with the cable operators. The FCC said it also plans to approve the deal soon. The marketing agreement, which sees Verizon mobile services bundled with cable triple-play offers, will not be allowed in markets where Verizon offers its Fios fibre services, in order to encourage the company to promote the rival service. In areas where Verizon offers DSL, the joint marketing must end by December 2016. The conditional approval also restricts the length of the companies planned technology joint venture and requires licensing of any resulting products. In addition, Verizon must be allowed to bundle its products with other TV services and the cable companies work with other mobile operators, including as MVNOs. The spectrum agreement, first announced in December 2011, will see Verizon buy frequencies for a total USD 3.7 billion from Time Warner Cable, Comcast, Bright House Networks and Cox Communications. As a condition of the deal, Verizon will also swap some of its own spectrum with T-Mobile USA.

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General

Companies:

Comcast,  Cox Communications,  FCC,  Time Warner Cable,  T-Mobile USA,  Verizon,  Bright House Networks

Countries:

United States

Tags:

Government telecommunications licensing, Voice services, Data services, Cooperations & alliances, Regulations, Wireline, Wireless, Internet Access, M&A buyouts & divestments, Marketing - Branding

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