Wireless Merger Threatens Competition, Groups Tell FCC

A coalition of public interest groups has stepped up protests to the Federal Communications Commission over the proposed merger of Verizon Wireless and rural carrier Alltel, saying the deal would be a threat to competition in the cellphone industry. The Public Interest Spectrum Trust, comprised of six organizations, has balked at an order proposed last week by FCC Chairman Kevin J. Martin to approve the merger, which would create the nation's largest cellphone carrier, with 80 million subscribers. When they meet with the agency's five commissioners this week, members of the trust said they would urge the FCC to put forth clear policies to prevent a combined company from blocking device makers or violating open network guidelines applied to wireline Internet service providers. An FCC source, who spoke on the condition of anonymity because the deal is still under review, said the proposed merger was being rushed because of pressure from the carriers to complete the deal before the presidential election.