Verizon And Comcast Emerge Unscathed From Inquiry Into Spectrum And Co-Op Pact

Members of the Senate Antitrust Subcommittee didn’t seem to have the technical knowledge, the time, or perhaps the will to pin down Verizon and Comcast execs who testified at today’s hearing about the controversial partnership arrangement the companies created in December. Verizon agreed to pay $3.6B for wireless spectrum that several cable giants control, and both camps agreed to cross promote each other’s products in markets where they don’t compete head-to-head. The deal is under review at the Justice Department and FCC. Verizon says that the collaboration won’t affect its efforts to roll out FiOS video and broadband service. It “has always been intended to reach a relatively small” part of the country, the company’s General Counsel Randal Milch said. He added that “Wall Street punished us for the massive investment we made in FiOS…We owe it to our shareholders to give them a return.” Comcast EVP David Cohen echoed the theme that “there’s nothing in these transactions that will stop us from trying to beat the brains out of FiOS.” (more…)

This article was printed from https://deadline.com/2012/03/verizon-and-comcast-emerge-unscathed-from-inquiry-into-spectrum-and-co-op-pact-247198/