Ill political winds for Verizon-Comcast deal

As Speed Matters has been reporting, Verizon Wireless has teamed up with Comcast to offer bundled phone and cable, including Internet. The alliance turns formerly bitter rivals into partners, and by dividing up the market, threatens to limit consumer choice. And, the alliance comes as Verizon landline - a high-wage union employer - decided to cut back on its FiOS build out.

"The alliance has resulted in some strange marketing twists. The website of Verizon Communications touts its FiOS TV and Internet service as the fastest and most reliable in the nation, while its subsidiary, Verizon Wireless, had promoted Comcast's service as the best."

In response, Senator Herb Kohl (D-WI), who chairs the Antitrust, Competition Policy and Consumer Rights Subcommittee, is promising to hold a hearing that would look into the marketing deal and into Verizon's intent to purchase spectrum licenses from Comcast and other cable companies.

The major newspaper in Kohl's state said that the senator is "expected to schedule the hearing, possibly for March or soon after." And that "It would examine how the cross-marketing and spectrum deals could affect prices that consumers pay for cable and wireless services."

In a similar development, Senator Al Franken (D-MN) released a letter he sent to the Justice Depart and the FCC, asking them to examine the deals, which he found "very troubling, because it would seem to carve up the marketplace for cable, broadband and wireless-phone service..." Said Franken:

"These joint-marketing agreements will turn these rival companies into partners, rather than competitors, and could ultimately mean less competition, less choice and higher prices for consumers."

Verizon's evil twin (Speed Matters, Feb. 1, 2012)

Verizon Wireless-Comcast Deal Meets Political Resistance (Wall Street Journal, Feb. 2, 2012)

Antitrust hearing planned for Verizon-Time Warner deals (Milwaukee Journal-Sentinal, Feb. 6, 2012)