Senate Probes Verizon-Cable Deal

Excerpt from an article in

TheHill.com

Senate probes Verizon-cable deal 
By Brendan Sasso

The Senate Judiciary subcommittee on Antitrust, Competition Policy and Consumer Rights will examine Verizon's $3.6 billion deal with a coalition of cable companies on Wednesday afternoon.

Verizon agreed in December to buy wireless airwave licenses, known as spectrum, from cable companies including Comcast, Time Warner and Bright House Networks. Under a separate deal announced simultaneously, Verizon and the cable companies agreed to cross-sell one another's services.

"The subcommittee carefully examines questions about competition in the wireless and video markets, with the ultimate goal of protecting consumers and reducing their cable and cell phone bills, and these deals are no exception," Subcommittee Chairman Herb Kohl (D-Wis.) said in a statement announcing the hearing.

The witnesses will be Randal Milch, Verizon's general counsel; David Cohen, Comcast's vice president; Steven Berry, CEO of the Rural Cellular Association; Joel Kelsey, policy adviser for consumer group Free Press; and Timothy Wu, a Columbia University law professor who specializes in Internet, communications and antitrust issues.

Wu served as chairman of Free Press from 2008 to 2011.

The Federal Communications Commission and the Justice Department are probing whether the deals will hurt competition in the wireless industry.

The Rural Cellular Association, other wireless carriers including Sprint and T-Mobile and consumer groups such as Free Press argue the spectrum deal will allow Verizon, the nation's largest wireless carrier, to consolidate its control over the airwaves, stifling competition. The groups also argue that the cross-marketing deals could lead to price-fixing or other anticompetitive behavior.

Verizon said the spectrum deal will help it meet the growing demands of smartphones and tablet computers. The company pointed out that the cable companies have no immediate plans to use the spectrum licenses.

FCC Bars Use of Airwaves for a Broadband Plan

Excerpt from an article in The New York Times
Wednesday, February 15, 2012

F.C.C. Bars the Use of Airwaves for a Broadband Plan 

By EDWARD WYATT

WASHINGTON — A proposed wireless broadband network that would provide voice and Internet service using airwaves once reserved for satellite-telephone transmissions should be shelved because it interferes with GPS technology, the Federal Communications Commission said Tuesday.

The F.C.C. statement revokes the conditional approval for the network given last year. It comes after an opinion by the National Telecommunications and Information Administration, which said that “there is no practical way to mitigate the potential interference at this time” with GPS devices. The telecommunications and information agency oversees telecommunications policy at the Commerce Department.

The news appears to squash the near-term hopes for the network pushed by LightSquared, a Virginia company that is majority-owned by Philip Falcone, a New York hedge fund manager.

LightSquared said on Tuesday that the testing of the network was “severely flawed.” It “remains committed to finding a resolution with the federal government and the GPS industry to resolve all remaining concerns,” the company said in a statement.

The company said it “profoundly disagrees” with the results of the testing, which was done by a national engineering group, and the telecommunication agency’s opinions, “which disregard more than a decade of regulatory orders, and in doing so, jeopardize private enterprise, jobs and investment in America’s future.”

The F.C.C., which had granted a conditional approval to LightSquared to go ahead with its network pending the results of more testing, will now propose barring near-term deployment of the LightSquared system, the F.C.C. said. The commission will issue a request for public comment on the proposed action on Wednesday.