Verizon Communications (VZ) is firing on all cylinders right now. Verizon did not participate in a bidding war with AT&T (T) for T-Mobile and the merger was not kind to T-Mobile and AT&T, rejected as it was by the FCC in December 2011. Also in December 2011, Verizon signed a $3.6 billion deal with Comcast (CMCSA), Time Warner Cable (TWC) and Bright House Networks to acquire 122 advanced Wireless Services spectrum licenses that could potentially bring coverage to more than 250 million people in seven of the eight most elite markets. When the scrutiny is over, Verizon Terremark will be in prime position to accommodate subscribers going forward.
Update on Advanced Wireless Spectrum sale
In March 2012, executives from both sides appeared and testified in front of the Senate Judiciary antitrust subcommittee outlining the reasons for and against. Primarily, Verizon and Comcast believed it was nothing more than another choice for consumers and a fourth choice in the bundling of services, in which a consumer could either accept the discount or not depending on bundling services.
On the other side of the coin, Rural Cellular Association, which includes the likes of Sprint (S) and T-Mobile, argued that the merger is nothing more than a grab at market share, where if the deal is approved Verizon and AT&T would own 60% of the country’s spectrum. There is an underlying tone of politics that could become involved in lobbying for the approval or disapproval of the sale of spectrum rights.To continue reading, click here.