Verizon-Cable Deal: Too Cozy?

Posted by Sam Churchill on

Verizon Wireless and its cable partners are willing to give U.S. communication regulators confidential details of their agreement, but objected to a request for information from Sprint Nextel, DirecTV , T-Mobile USA and others, reports the Chicago Tribune.

In a meeting last week with the FCC, Verizon Wireless and its partners argued that commercial agreements do not need FCC approval and “have no bearing on whether the spectrum sale is in the public interest” so they do not need to be part of the FCC review.

In a filing to the FCC on Wednesday (pdf), Verizon agreed to provide the FCC details of the co-marketing deal on a classified basis. The agreement stipulates that MSOs will sell Verizon’s mobile phones while Verizon will push cable modems.

But consumer advocates remain worried that Verizon’s co-marketing partnership and spectrum deal with the cable industry contains either a documented or undocumented “gentlemen’s agreement” that Verizon will limit future expansion of FiOS, says DSL Reports. That could mean that the Verizon’s stalled FiOS upgrades would remain that way, as a courtesy, in exchange for being able to sell LTE service to millions of new cable customers.

See DW: Cross Marketing of Verizon & Cable Begins.

Posted by Sam Churchill on Friday, January 20th, 2012 at 11:39 am .

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