Verizon Wireless’ US$3.9bn acquisition of AWS spectrum from cablecos looks set to be approved after the companies allayed regulators’ competition concerns, reports The Wall Street Journal (WSJ).
Verizon and JV SpectrumCo – consisting of Comcast,…
Verizon Wireless’ US$3.9bn acquisition of AWS spectrum from cablecos looks set to be approved after the companies allayed regulators’ competition concerns, reports The Wall Street Journal (WSJ).
Verizon and JV SpectrumCo – consisting of Comcast, Time Warner Cable and Bright House – had agreed to enter into joint ventures and marketing agreements as part of the spectrum acquisition.
But regulators were concerned it would turn competitors into partners and mean that Verizon held too much spectrum.
Now, the WSJ reports that the companies have agreed in principle to curb marketing agreements and limit duration of any partnerships to five years, citing people close to the negotiations.
Verizon and Comcast have also agreed not to market each others businesses in areas where they both already compete by offering internet, fixed and wireless services.
The specifics of the checks are still to be ironed out but the chair of the Federal Communications Commission (FCC), Julius Genachowski, is reportedly set to circulate a proposal to the four other commissioners this week, according to several agency officials.
The Department of Justice (DOJ) is also preparing to approve the deal in the coming weeks, reports the WSJ.
In July, media reports suggested the FCC was ready to green-light the acquisition, which followed Verizon divesting spectrum to T-Mobile USA and putting licences in the 700MHz band up for sale. However, it was suggested, at the time, that the DOJ still had antitrust concerns.
