US curbs Verizon's wireless entertainment push

Verizon was approved to purchase wireless spectrum from three major cable television providers
A Verizon Wireless store in San Francisco. The US Justice Department announced tough limits Thursday on Verizon's effort to push into wireless entertainment, amid worries the cellphone and cable company was building a monopoly.

The US Justice Department announced tough limits Thursday on Verizon's effort to expand its wireless entertainment footprint, amid worries the cellphone and cable giant was building a monopoly.

The department put limits on Verizon's marketing activities while approving its purchase of from major cable television rivals Comcast, and Bright House Networks.

The department also placed limitations on the companies' plans to cooperate in their respective markets by bundling their products together as a part of the spectrum deal.

It also said Verizon had agreed to divest some of the spectrum to a smaller cellphone competitor, T-Mobile.

The $3.6 billion deal announced by the four last December sparked antitrust lawsuits over fears that by packaging their products together, the four would lock out competition in cable markets.

Regulators also feared that the joint marketing would give Verizon a dominant position in the rapidly growing 4G LTE-standard wireless broadband and .

The sector has been booming as online streaming has improved in quality and as more customers buy that are well-suited to multimedia consumption.

"By limiting the scope and duration of the commercial agreements among Verizon and the cable companies while at the same time allowing Verizon and T-Mobile to proceed with their spectrum acquisitions, the department has provided the right remedy for competition and consumers," said Joseph Wayland, who heads the Antitrust Division of the Justice Department.

(c) 2012 AFP

Citation: US curbs Verizon's wireless entertainment push (2012, August 16) retrieved 19 March 2024 from https://phys.org/news/2012-08-curbs-verizon-wireless.html
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