Exec reveals Comcast may have deceived FCC on wireless spectrum purchase

Several years ago, Comcast purchased a large portion of the nation's limited Advanced Wireless Services (AWS) spectrum, citing need and possible intention to build wireless networks. But in early December of 2011, Comcast and its partners announced an agreement to sell the same spectrum to Verizon for $3.6 billion, at a significant premium and without ever having used it.

The FCC fully expects spectrum purchasers to use their spectrum, rather than horde to sell later for windfall profits. But, according to a statement by Comcast CFO Michael Angelakis at a January 5, 2012 Citi Entertainment, Media And Telecommunications Conference, "We never really intended to build that spectrum, so therefore it's a really good use [selling to Verizon] of that spectrum."

Following up on those remarks at the recent Consumer Electronics Show, FCC Commissioner Robert McDowell reportedly questioned whether Comcast misled the agency when it acquired airwave licenses.

Despite efforts by Angelakis and Comcast lobbyist David Cohen to mitigate the remarks, Comcast's possible deception could have consequences as the FCC reviews the spectrum deal. The FCC is now seeking public comment on whether it should approve the spectrum deal. The Justice Department is also probing whether the deal would violate antitrust law.

Verizon Nabs Large Chunk of Cable Industry Spectrum (DSLReports, Dec. 2, 2011)

Comcast, Time Warner Cable, and Bright House Networks Sell Advanced Wireless Spectrum to Verizon Wireless for $3.6 Billion (PR Newswire, Dec. 2, 2011)

FCC commissioner questions whether Comcast misled regulators (The Hill, Jan. 12, 2012)