Thursday, August 23, 2012

FCC Approves Verizon Purchase of Cable AWS Spectrum

The U.S. Federal Communications Commission has approved a modified plan for transferring spectrum from a consortium of cable operators to Verizon, and though not strictly related, a set of agency agreements whereby the cable companies and Verizon can resell each other’s services.

The approval also clears the way for spectrum transfers to T-Mobile USA and and an exchange of spectrum between Leap Wireless and Verizon as well.

The decision was expected, once the cable companies and Verizon agreed to limit the terms of the agency agreements and any systems developed between the cable operators and Verizon as a result of their collaboration for a limited number of years.

Verizon will purchase spectrum in the Advanced Wireless Services band from Comcast, Time Warner Cable, Cox Communications and Bright House Networks, while selling some of its spectrum to competitors T-Mobile USA and Leap Wireless.

The FCC's approval forbids Verizon from reselling cable products and services where Verizon FiOS service already exists, principally. The U.S. Department of Justice earlier had demanded those same concessions as part of its clearance of the deal on antitrust grounds.

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