Verizon Wireless spectrum deal in for tough remedy

Verizon Wireless may need to agree to tough conditions to win approval for its deals to buy spectrum from cable companies and market each other’s products, according to three sources knowledgeable about the negotiations.

Negotiations with the Justice Department's Antitrust Division have been bruising, focusing on plans by Verizon Wireless and Comcast, the biggest mobile carrier and the biggest cable company, respectively, to market each other's products. There has also been concern about a plan for a joint venture to develop new technologies, such as one to allow consumers to move seamlessly between wired and wireless hookups. Critics say it could create cutting-edge products only available to the consortium. The path that the talks are on would lead to a consent decree that would forbid the cross marketing agreement where Verizon markets its FiOS product, according to the three sources, who were not authorized to speak on the record. Cross marketing in the rest of Verizon's footprint and the joint research and development project would be allowed but only for a limited period of time, the sources said.