CWA tells FCC Verizon deal undermines competition

In a 16-page letter to the FCC, CWA detailed its deep concerns about the proposed deal between Verizon Wireless and the largest cable companies. CWA emphasized that the proposed transaction, which involves a spectrum transfer, joint marketing agreements, and a joint operating venture, would eliminate competition in video, broadband, wireless, and voice markets. By turning former competitors into partners, the transaction would result in higher prices for consumers, less choice, reduced investment, and fewer jobs. In particular, CWA noted that its review of the confidential agreements reveals that the spectrum transfer and commercial agreements are inextricably intertwined, and cannot be separated for public interest review purposes.

One of CWA's primary worries is that the particulars of the deal are hidden between a cloak of secrecy. CWA Telecommunications Policy Director Debbie Goldman told Reuters "The details of how [the transaction will reduce competition] is in these commercial agreements that are behind a firewall that the public cannot see."

Nevertheless, Goldman explained to Reuters that "The marketing agreements would allow collusion between the parties in such a way that would give them the market power to dominate video, broadband, voice and wireless service."

The FCC and Department of Justice are reviewing the transaction. CWA wants the FCC and DOJ to impose conditions that would protect consumers and workers including expansion of FiOS, a prohibition on cross-marketing inside the Verizon landline footprint, and provisions that would allow other companies access to the technology and services provided by the Verizon Wireless/Big Cable alliance.

CWA letter to FCC (May 7, 2012)
 
Union warns Verizon cable deal could end competition (Reuters, May 7, 2012)
 
CWA rises up against Verizon-cable wireless spectrum dealings (Fiercetelecom.com, May 8, 2012)