In its ongoing investigation of Verizon Wireless’ mega spectrum deal, the FCC is asking whether the company would abandon a proposed 700MHz spectrum sale if the regulator did not approve all of the company’s planned AWS licence purchases.
The…
In its ongoing investigation of Verizon Wireless’ mega spectrum deal, the FCC is asking whether the company would abandon a proposed 700MHz spectrum sale if the regulator did not approve all of the company’s planned AWS licence purchases.
The request was made in a letter to the company.
Verizon agreed deals for a total US$3.9bn in December last year to buy unused AWS frequencies from four cablecos. Last month it put lower 700MHz band up for sale, but stipulated that a sale was “contingent” on its deals with the cablecos being approved.
The regulator is now seeking clarification as to whether Verizon would continue its plans to divest itself of lower 700MHz licences if the commission only ratified some of their AWS purchases.
The letter from the FCC also asked Verizon to explain how a sale of lower 700MHz band was relevant to its acquisition of AWS, and what efforts it had made to sell the 700MHz frequencies so far. It asked for a response by 22 May 2012.
Under the terms of Verizon’s licences for lower 700MHz A and B block issued in 2008, it is required to build a network by June 2013 or face a reduction in its licence terms. The operator has not utilised the band as yet.
Last month, Verizon executive Tom Tauke said the looming buildout deadline prompted the sale of the A and B band and that AWS was more compatible with their existing spectrum holdings, according to Reuters. He said a sale was linked to the upcoming 2013 deadline and not the proposed AWS deal.
Verizon’s purchase of AWS has proved controversial with its competitors in the spectrum-constrained US market.
T-Mobile USA and Sprint have voiced their opposition, arguing that if their larger rival acquires more airwaves they will be unable to compete. Concerns range from capacity issues to worries about spectrum fragmentation and interoperability of handsets.
