Verizon Wireless’ Spectrum Acquisition Already Causing Industry Chain Reaction

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News Posted: Sat, Dec 3 2011 5:39 PM
Well that didn’t take long. Verizon Wireless’ acquisition of SpectrumCo’s 122 Advanced Wireless Services spectrum licenses is already making waves in the wireless industry.

As we reported earlier, Comcast, Time Warner Cable, and Bright House Networks were the trio that formed SpectrumCo, and the sale of that group’s spectrum to Verizon opened up the possibility of various deals between those entities.

As a result, Comcast and Time Warner Cable are kicking Clearwire 4G to the curb. The two cable operators will stop offering Clearwire 4G service as part of their service bundles within the next 6 months. Comcast, for its part, will start bundling its offerings with Verizon Wireless services instead, according to a Computerworld report. (Within months, Comcast will be testing four markets with the new Verizon option.)


The above is very bad news for Clearwire, which is a company that is now left with one big customer in Sprint Nextel--and that relationships is starting to look a bit like one between a cash-strapped kid and his rich, impatient uncle. Further, although Clearwire has previously announced that it was going to revamp its networks using LTE 4G technology and essentially abandon WiMax 4G (which is a sign that WiMax is done for in general), such a conversion just isn’t cheap or easy. Losing customers to a competitor like Verizon won’t exactly improve cash flow.

That leaves Clearwire in a bad spot with Uncle Sprint, and Sprint surely isn’t happy about where that puts it compared to its competitor Verizon. While Verizon continues to aggressively deploy LTE all over the country, Sprint’s 4G future is in large part tied to a company that is having money problems and is in the midst of trying to convert its existing technology to LTE.

Of course, these changes are all dependent on FCC approval of the Verizon spectrum acquisition--you never know, the government agency could put the kibosh on the whole thing.
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Verizon is basically blocking T-Mobile from expanding, if it ever does after the ATT crap, and its cutting sprint out of the 4g mix. I know this is just part of business, but it seems that verizon is making a play to sink sprints ship and hog as much spectrum as it can.

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AKwyn replied on Sat, Dec 3 2011 8:42 PM

I think it's funny that the tables have turned. It seemed a while ago that AT&T is the bad guy, now Verizon seems to be. It's also funny that both issues seem to be focused on bandwidth usage and expansion; I mean if you look at it, both are trying to push the small men out, which in this case always seems to be Sprint.

Still, I'm going to wait to see how this turns out. I mean if the AT&T/T-Mobile merger is having trouble, then just imagine what could happen with Verizon and it's newly acquired bandwidth.


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gazd1 replied on Sun, Dec 4 2011 7:07 AM

Well I'm a man that disagrees with monopolies, but it's hard to stop them when they're just starting to grow big. Big I said, not a giant yet.

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Well Verizon, Comcast, and Time Warner all basically have monopolies in certain section of the country already. What I think is eventually is we will only have one company to choose from which will most likely be government sponsored. It would be the only way to have a robust network. The problem with that model of course is that without competition where is the incentive to innovate and build out the network further.

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rapid1 replied on Mon, Dec 5 2011 8:49 AM

This is much like the At&t-mobile thing really and removes players from the market these players are just not as visible and therefore less widely supported as a brand. The big thing with all of this is even more insidious really than the At&tT-mo thing is because it is behind the general consumers back and will go unnoticed and will most likely therefore happen. As far as it goes Verizon is one of the owners of America in general just like Comcast is At&t is kind of like a hated step parent!

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gloriad1 replied on Mon, Dec 5 2011 10:59 AM

Hopefully they will not get too carried away with take overs.

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digitaldd replied on Mon, Dec 5 2011 11:03 AM

its Veriz0wn not Verizon..

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