Verizon’s cable spectrum mash up: Evil genius or simply genius?

Congress is eyeing the competitive implications of Verizon’s $4 billion deals to buy spectrum from the cable companies, hoping to understand how the deals could affect both wireless and wireline markets.

Much like those of us at GigaOM, some in the Senate are wondering if this is a ceasefire in terms of broadband competition, both in the air and on the ground. Under a pessimistic view the deal could lead to consumers getting stuck five or ten years out with slower broadband than the rest of the world, with no competitive impetus to move the U.S. forward. On the wireless side, it potentially eliminates the threat or the existence of a new player that could lower prices and keep Verizon and AT&T “honest.” That’s why Congress, the FCC and perhaps the Department of Justice should ask a lot of questions about this deal and its attendant marketing agreements between the cable companies and Verizon.