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Justice Department Approves Verizon/Big Cable Spectrum Deal

August 21, 2012

On Aug. 16., the U.S. Department of Justice antitrust division approved Verizon’s $3.6 billion spectrum deal with some of the nation’s biggest cable companies, an agreement that has been criticized as anti-competitive and likely to result in Verizon abandoning its fiber-optic network (FiOS) business in dozens of areas, including those where these services are installed and maintained by union members, raising prices for consumers.

The decision allows Verizon Wireless and the top four cable companies – Comcast, Time Warner Cable, Cox Communications and Bright House – to form what in effect would be an unchecked monopoly, dominating the market in “quad-play” service:  wireless, phone, Internet and TV.

The Justice Department’s proposal restricts Verizon Wireless from engaging in cross-marketing with the cable companies to sell broadband services in markets where the telecommunications company currently offers FiOS.

Despite Justice’s conditions, critics – including many elected officials, unions, businesses and industry watchdogs – are concerned that the government’s approval of the deal continues and could accelerate the anti-competitive, anti-worker behavior of Verizon and Big Cable.

Nothing in the proposed settlement prevents Verizon from abandoning current FiOS infrastructure however, says IBEW International President Edwin D. Hill:

Workers and consumers are still vulnerable in hundreds of communities. And the losers will probably include consumers served by smaller companies, including FairPoint Communications, Frontier and CenturyLink. In the IBEW’s view, the proposed settlement amply demonstrates that regulators pay far too little attention to protecting decent-paying jobs and the future of workers in today’s economy, while paying too much deference to the profits of big corporations. The IBEW joins with CWA, members of Congress, local elected officials and consumer advocates who are speaking out against the DOJ’s proposal.