Verizon Wireless and T-Mobile announced today that they are seeking permission from the FCC to exchange spectrum licenses in the Advanced Wireless Spectrum (AWS) band. Since the deal includes spectrum Verizon expects to acquire in transactions with SpectrumCo, Cox and Leap, the company said the deal is contingent on government approval of that separate cable deal. The Justice Department and FCC are both reviewing the deal.
The swap with T-Mobile would help both companies expand wireless broadband capabilities, but consumer-interest group Public Knowledge said it strengthens Verizon's control of the market and would hurt consumers. Free Press and the Alliance for Broadband Competition also cautioned regulators to review the swap carefully and reiterated their opposition to the cable deal upon which it depends. The Verizon-cable deal includes confidential side agreements that critics fear would reduce competition in the broadband and paid TV markets.