FCC Establishes Docket for Monitoring the Recent Verizon Wireless Transaction

On August 22, 2012, the Federal Communications Commission approved with conditions the assignment of spectrum licenses to and from Verizon Wireless arising from several interrelated transactions.

These included the assignment of AWS-1 spectrum licenses from Leap to Verizon Wireless, the assignment of AWS-1 spectrum licenses from Verizon to T-Mobile, and the assignment of AWS-1 licenses from SpectrumCo and Cox (Cable Companies) to Verizon Wireless. The spectrum assignment from the Cable Companies to Verizon Wireless was part of a larger transaction between Verizon Wireless and the Cable Companies (“Verizon-Cable Transaction”), which also included commercial arrangements under which: (1) Verizon Wireless and the cable operators act as sales agents of one another’s services; (2) each of the cable operators may become resellers of Verizon Wireless’s services; and (3) the parties (other than Cox), through a joint venture, may seek to develop ways to integrate wireline and wireless services (collectively, “the Commercial Agreements”). As part of its approval, the FCC noted that Verizon Communications Inc. and Verizon Wireless agreed to comply with a number of conditions, including the assignment of spectrum licenses to T-Mobile, build-out requirements, roaming requirements, and monitoring and reporting requirements.

In addition, to assist in monitoring any effects the Commercial Agreements have on the marketplace and on the development of emerging product markets, the Order directed the Wireline Competition Bureau to open a docket “for the public to file complaints or petitions alleging that the parties are acting in violation of the conditions imposed by this order or engaging in anti-competitive conduct relating to this transaction that implicates the public interest or otherwise violates the Act or FCC rules.” By this Public Notice, the FCC is informing the public that WC Docket No. 12-234 has been established for this purpose.