T-Mobile USA is requesting that the federal government block the purchase of wireless spectrum from cable companies that Verizon Wireless has proposed. They believe that the spectrum deal involving Comcast, Time Warner, Bright House Networks and Cox Communications, will grant too much power to the number one carrier in the U.S.
“[The spectrum in question] is unlikely to provide any near-term benefits to Verizon Wireless customers,” T-Mobile said in its filing. “Rather, the principal impact of the acquisition would be to foreclose the possibility that this spectrum could be acquired by smaller competitors — such as T-Mobile — who would use it more quickly, more intensively, and more efficiently than Verizon Wireless.”
These agreements have already raised concerns among some politicians, noting that Verizon and Comcast, in particular, would essentially be on the same team. “These joint-marketing agreements will turn these rival companies into partners, rather than competitors,” wrote Senator Al Franken, Democrat of Minnesota, in a letter to the commission this month. “I fear this will ultimately mean less competition, less choice, and higher prices for consumers.”
T-Mobile says that the spectrum transfer would limit the ability for competitors to build so-called fourth-generation LTE networks. At the same time, the mobile company announced that it would spend $4 billion on its network over the coming years, including $1.4 billion in incremental network investment in the next two years, to deploy LTE and expand the coverage of its HSPA+ network, partially using spectrum gained from the failed merger with AT&T.
Source: New York Times