View a Clip from the Film ‘Raze’
Free PR Web Directory
According to sources in a Wall Street Journal report, Verizon and many other cable companies are now working together with regulators to lessen their joint marketing arrangement to help gain the $3.9 billion wireless-spectrum deal towards approval.
Verizon, along with Comcast, Time Warner Cable, and Bright House Communications have all agreed to a plan brought up by the Department of Justice. This plan will limit the joint marketing agreement for up to five years. This plan will also stop Verizon and other operators from reselling their services of broadband, television, and phone services in competition.
The companies are hoping the deal will be approved within a few weeks.
Back in December Verizon and SpectrumCo made a deal which included Verizon buying 20 megahertz of Advanced Wireless Spectrum that the cable companies had already bought in a 2006 FCC auction. The two companies also made an agreement to allow companies to resell Verizon’s wireless phone, broadband, home phone, and TV services also allowing Verizon to resell these products in Verizon Wireless stores.
Although to Verizon this seemed like the perfect deal, others did not feel the same. Consumer advocates, labor unions, and wireless competitors were all extremely opposed to this deal. The wireless rivals thought of it as unfair that Verizon would be taking up a ridiculous amount of this scarce resource. On the other hand, the consumer advocates and labor unions are more worried about the co-marketing deal. In their eyes it seems that this deal is just so those companies cannot compete in certain markets.
In the beginning of the summer Verizon strike a separate deal with T-Mobile USA. If Verizon gets approval for the above agreement T-Mobile will buy a portion of Verizon’s cable spectrum. In turn the FCC declared that the regulator is most pleased with Verizon’s deals.
Since Verizon was approved for the spectrum side the biggest issue was to now be approved for the co-marketing arrangement by the DOJ. The head of Comcast’s regulatory affairs, David Cohen, said to CNET earlier this year how important the marketing arrangement was for the entire deal to not unravel.
The Wall Street Journal sources are thinking the deal with be approved in a few weeks. Although the FCC may cause a few more bumps in the road before settling on the terms of the arrangement. Verizon, Comcast, and the FCC have all declined to make any comment on the subject.