US operator MetroPCS has told regulators that Verizon Wireless should divest more spectrum before its US$3.9bn deal to buy AWS spectrum from cablecos is greenlit.
In a letter to the Federal Communications Commission (FCC) MetroPCS welcomed Verizon’s…
US operator MetroPCS has told regulators that Verizon Wireless should divest more spectrum before its US$3.9bn deal to buy AWS spectrum from cablecos is greenlit.
In a letter to the Federal Communications Commission (FCC) MetroPCS welcomed Verizon’s decision to sell spectrum to T-Mobile USA in late June, but accused the US giant of still “warehousing” spectrum.
Along with the sale to T-Mobile, Verizon has also committed to divesting spectrum in the 700MHz band and enlisted Loop Capital to offload it in May.
T-Mobile USA was one of the fiercest critics of the US$3.9bn acquisitions before it acquired spectrum from Verizon, after which it came out in support of the deal.
MetroPCS has previously expressed an interest in buying licences in the 700MHz band that Verizon is selling. In May its CFO described the licences as a “great option”.
In its filing MetroPCS says, “Even with the proposed sale to T-Mobile, Verizon would still hold 20 MHz of undeveloped spectrum throughout most of the U.S. and up to 40 MHz of unused spectrum in many major markets.”
The operator also alleges that Verizon’s US$3.9bn deal will damage the 4G LTE roaming market by removing four potential roaming partners, exacerbating Verizon Wireless’ unwillingness to offer roaming on commercially reasonable terms.
A Reuters report earlier this week suggested that the FCC was ready to approve Verizon’s cableco deal, citing people with knowledge of the situation.
However, the same report suggested that the Department of Justice was concerned with the cross-marketing deals agreed between Verizon and the cablecos.
No public decision from either the FCC or the DOJ is expected until August at the earliest. A Verizon spokesperson told Reuters that it still expects the deal to be approved later in the summer.
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