Sprint Nextel has spelled out its concerns over the commercial agreements Verizon Wireless has signed with cablecos as part of its US$3.9bn spectrum deal.
In a filing with the Federal Communications Commission (FCC), the wireless operator singled out…
Sprint Nextel has spelled out its concerns over the commercial agreements Verizon Wireless has signed with cablecos as part of its US$3.9bn spectrum deal.
In a filing with the Federal Communications Commission (FCC), the wireless operator singled out backhaul and wifi as areas where Verizon’s commercial relationship with cable operators may disadvantage other wireless carriers.
Sprint sets out a number of recommendations which it suggests the FCC should implement if it plans to approve Verizon’s US$3.9bn deal.
First, Sprint recommends the parties must not market, or profit from, each others’ services in areas where any of the cablecos – Comcast, Time Warner Cable, Bright House or Cox Communications – competes with Verizon’s wired network.
Sprint is also particularly concerned about wifi access. Currently wireless operators utilise the cablecos’ wifi networks, but Sprint worries that Verizon may receive exclusive or preferential treatment in the future if the spectrum deal is approved without commitments. It calls on the FCC to guarantee that there is no discrimination to Verizon’s competitors and that all wireless operators continue to get the same level of access at the same price.
Sprint expresses similar concerns about backhaul, and demands guarantees that cablecos do not restrict their facilities from operators that aren’t Verizon.
Sprint’s concerns regarding the commercial agreements echo the reported worries at the Department of Justice (DOJ).
Last month it was reported that the DOJ had concerns over the close collaboration between the largest wireless operator, Verizon, and the largest cableco, Comcast, on antitrust grounds.
The agency had concerns that the tie-ups will shut out competitors and lead to higher prices for consumers.