FCC green lights wireless deals

The Federal Communications Commission approved Sprint-Nextel's deal with Clearwire to create a new WiMax wireless broadband network. In a 5-0 vote, the FCC approved a plan to combine Sprint's Xohm network with Clearwire's WiMax-like network. Google, Intel and a group of cable companies are investing billions into the $14.6 billion venture, which will carry Clearwire's name. The Justice Department has already indicated that it will allow the deal to proceed, but will continue to monitor it. The 11am meeting did not start until nearly 4pm, but the Commission also approved the $28 billion acquisition between Verizon Wireless and Alltel. The delay was attributed to discussions among commissioners and Verizon to hammer out a deal that satisfied concerns over roaming conditions put on the deal. During the meeting, Commissioners Michael Copps and Jonathan Adelstein, expressed concern that combining Verizon and Alltel will limit the number of roaming partners that smaller carriers in rural markets could work with. And as a result, they say this will limit competition and drive up prices for consumers. As part of a compromise, Verizon agreed to keep its roaming rates the same for the next four years. In addition to keeping roaming rates the same, the FCC is also requiring Verizon to divest service in a total of 100 markets. It is also requiring e911 accuracy and Universal Service Fund contributions.