Verizon
Communications Inc.(NYSE:VZ), which is looking at deals to buy spectrum from
cables companies, may have to comply with some tough conditions by antitrust
regulators, as per a report from Reuters.
Comcast
Corporation(NASDAQ:CMCSA) and Time Warner Cable Inc(NYSE:TWC) are among the
group of companies that Verizon is negotiating with to buy spectrum in deals
worth $3.9 billion. The companies want to close the deals in August.
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The
Justice Department and Federal Communications Commissions are ready to
approve the plans of the mobile services
provider but antitrust regulators have sought strict limits on controversial
side deals, the Reuters report said.
Negotiations
with the Justice Department's Antitrust Division have been bruising, focusing
on plans by Verizon Wireless and Comcast, the biggest mobile carrier and the
biggest cable company, respectively, to market each other's products, it said.
Regulators
have expressed concerns over a joint venture to develop technologies - such as
one to allow consumers to move seamlessly between wired and wireless hookups -
that could create monopolies restricted to the consortium.
The
path that the talks are on would lead to a consent decree that would forbid
cross marketing agreement where Verizon markets its FiOS product, Reuters
quoted unidentified sources.
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Cross
marketing in the rest of Verizon's footprint and the joint research and
development project would be allowed but only for a limited period of time, the
sources told Reuters.
Verizon
is the biggest mobile service provider in the United States.
Antitrsut
regulaotrs are very active in the U.S. and last month the Justice Department
and the FCC turned down AT&T's bid to buy rival T-Mobile in the U.S., on
the grounds that the merger would create a monopolistic entity that would
stifle competition.
1983 was Judge Greene's order to AT&T to break up Bell System and now we see Verizon taking over the nation. Judge Greene is probably rolling over in his grave.
ReplyDeleteIf Verizon isn't becoming another monopoly, then what is it?
Don't depend on our U.S. Senators and Congress Members to do anything about it because they have been well cared for by Verizon on their campaign funds.
I think our leaders in Washington should all wear uniforms like NASCAR race car drivers, then we would be able to see who their corporate sponsors are!