Despite T-Mobile Deal, Verizon Still Faces Battle Over Marketing Agreements with Cable Firms

After cutting a deal with T-Mobile USA, Verizon appears to have helped smooth the way for federal approval of its bid to buy spectrum from a group of cable firms. But it has done little to quell concern over related marketing agreements between the wireless provider and the cable operators.

Analysts say Verizon's deft move to peel off T-Mobile from the band of critics of its deal with the cable firms will help clear the way for Federal Communications Commission approval of the spectrum transaction. "Our sense is the deal would address or largely address the FCC's spectrum concentration concerns resulting from Verizon's planned purchase of cable AWS (advanced wireless service) spectrum," the research firm Stifel Nicolaus said in a research note. Even critics acknowledged that Verizon's deal with T-Mobile, which is contingent on approval of its spectrum deal with the cable firms, has removed a major hurdle. "I definitely think that Verizon has played this very well," Public Knowledge Senior Vice President Harold Feld said.