Critics of Verizon Wireless-SpectrumCo Deal Align
Citing overlapping interests, several critics of the proposed AWS license transfer from cable operators to Verizon Wireless said they're joining forces to raise the profile of the arguments against the deal . T-Mobile, Sprint, Public Knowledge and RCA are members of the new Alliance for Broadband Competition. They discussed on a teleconference with reporters Monday their concerns about the deal and the joint-marketing agreements and technology joint-venture that go with it.
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Proponents of the transaction dismissed the move as a publicity stunt. “This faux-coalition is ‘old whine in a new bottle,'” a spokesman for Verizon said. “There is nothing new here. Verizon Wireless has responded to each of these claims in our filings on multiple occasions, has addressed them with the FCC and is confident we have made a strong case on bringing unused spectrum to meet the needs of consumers in the public interest,” he said. A Comcast spokeswoman had a similar take: “Same PR Firm, different day,” she said, pointing out that the companies and groups on the call, which was organized by the Glen Echo Group have been “sending out similar press releases, doing press conferences and filings at the FCC together for months."
But members of the alliance said their concerns are valid and have been raised in meetings with regulators from the Justice Department and FCC. “I was very impressed with the detail of the questions and the level of knowledge that Justice showed” on the telecom law minutia involved in the deal, said Steven Berry, RCA’s president. In RCA’s meetings with the Justice Department, its antitrust investigators “were very interested in the other related issues like backhaul, roaming and interoperability,” Berry said. “I took that as a good sign because they're at least delving into it and the FCC is clearly focused on the spectrum side of it,” he said.
Because of the Supreme Court’s Verizon v. Trinko decision, the Justice Department and FCC review of the transaction will probably be well aligned, said Bert Foer, president of the American Antitrust Institute. He participated in the teleconference but the group is not a member of the alliance. “Typically in these situations, Justice and FCC are going to be working together pretty closely and come out with a consistent result,” he said.
The goal of the alliance is to get the executive branch agencies to take a closer look at the proposed license transfer and commercial agreements between the companies, Berry said. The group isn’t pushing for more congressional oversight, he said. “We're not expecting, nor do we seek a hearing on the House side,” he said. Timing is critical with the FCC’s 180-day clock on handling proposed transactions ticking away, despite a recent extension, said Kathleen Ham, vice president-federal regulatory for T-Mobile. “It’s important to draw attention to this issue right now,” she said.