Upcoming FCC Meeting Holds Huge Competitive Implications

Decisions made at the upcoming FCC meeting on November 4th could significantly impact telecom's competitive landscape. The tentative agenda includes two huge wireless merger approvals, a vote on the "whitespace" unlicensed spectrum order, and revamping of the intercarrier compensation system used among telecom carriers. The wireless merger decisions include the Verizon - Alltell and Clearwire-Sprint sprint deals. Implications from the Verizon-Alltel deal include: 1) a combined Verizon-Alltel will create the largest wireless carrier in the U.S., surpassing the current number one carrier AT&T, and 2) as a condition of the merger, the new entity will have to shed numerous rural markets (approx 100 at last count), opening the door for potentially new competitors in those markets. Implications of the Sprint-Clearwire deal include formation of a true nationwide WiMAX operator, who could potentially offer a third broadband pipe option into the home. Implications of the "whitespace" initiative include: 1) The potential empowerment of numerous competitors who can offer yet another broadband wireless option, who some call Wi-Fi on steroids and 2) a plethora of new wireless devices and applications that are designed to take advantage of the new connectivity.