Verizon - Cable Company Proposal could kill FiOS and cable competition as we know it
The end of competition usually means premium prices for servicesVerizon's proposed wireless spectrum purchase may mean it has joined forces with the companies it should be competing against. On Wednesday, executives from Verizon, Comcast, and various experts on anti-trust law and competition testified before a Senate committee to help decide the fate of a deal worth more than $3.6 billion that could reshape the face of Internet connectivity in the U.S. If it gets a green light, Verizon Wireless will purchase unused wireless spectrum from a consortium of cable companies. That deal, which was reached last December, included controversial agreements between the wireless carrier and cable providers, in which each arranged to market and advertise the other’s services — in some cases through “quadruple play” packages that could include TV, Internet, landline and wireless phone offerings. Although telecom and cable executives vigorously argued that the agreements would ultimately benefit consumers, the Senate committee raised serious doubts about the future of Verizon’s FiOS service, and of competition in home broadband and cable service entirely.
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