Free Press Asks FCC to Deny Verizon/T-Mobile Spectrum Swap

Free Press has filed a petition to deny Verizon's proposed swap of spectrum with T-Mobile, but its real issue is Verizon–SpectrumCo.

The group says the deal by itself would, for the most part, be in the public interest since it entails a net sale of spectrum to T-Mobile and swaps that enhance efficiency. But the deal cannot be looked at in isolation, says Free Press, and is not in the public interest when coupled, as it is by definition, with approval of the Verizon–SpectrumCo deal. The swap, which would have the net effect of spinning off some of the SpectrumCo purchase to competitor T-Mobile, is contingent on the FCC's approval of Verizon's purchase of spectrum from cable operators - SpectrumCo (which comprises Comcast, Time Warner Cable, and Bright House) and Cox in a separate transaction (some Leap Wireless spectrum is also part of the deal). Free Press opposes that SpectrumCo deal, particularly in combination with associated marketing agreements that have Verizon and cable ops selling their respective services and teaming on R&D to integrate wired and wireless broadband. That is too cozy a relationship among competitors, suggests Free Press.