Justice Department Probing Verizon Deal With Cable Companies

WASHINGTON (Reuters) - The Justice Department is probing Verizon Wireless' multi-billion dollar deal to buy wireless airwaves from cable operators and let them resell its mobile service, the department said on Tuesday.

Under the agreement, which was reached on December 2, Verizon Wireless will pay top U.S. cable providers $3.6 billion for the spectrum.

The review follows the Justice Department's review and opposition to AT&T Inc's $39 billion plan to buy T-Mobile USA - a deal AT&T gave up on this week.

The agreement, with a consortium that includes Comcast Corp and Time Warner Cable Inc, puts new pressure on Verizon rivals Sprint Nextel Corp and AT&T, which still needs more spectrum after ending its T-Mobile USA bid.

"My understanding is that it's the deal that we're looking at. We're looking at the proposed deal," said Justice Department spokeswoman Gina Talamona, who declined to outline any specific concerns the Justice Department had.

The deal was problematic because of the marketing arrangement, according to an antitrust source who is a veteran of the Justice Department.

"Comcast has decided not to compete and is handing spectrum over to Verizon," the source said. "They decided to halt the buildout. Instead of us seeing facilities-based competition, it appears that we're seeing collaboration."

Comcast declined comment, although a source close to the transaction said that paperwork for the antitrust review had not yet been filed.

A spokesman for Verizon said his company had not received any information on which it could comment.

Both Verizon Wireless and AT&T, the No. 1 and No. 2 U.S. mobile providers, have said they need more spectrum to support increased consumer demand for videos and other services that soak up bandwidth.

Verizon Wireless is owned by Verizon Communications Inc and Vodafone Group Plc. T-Mobile USA is owned by Germany's Deutsche Telekom AG.

(Reporting By Diane Bartz; editing by Andre Grenon)

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Comments

[shaydshayyii]

07:13 AM on 12/25/2011

Does not surprise me sense unethical behavior is encouraged on higher levels of Management and executives and Human resources always find cases inconclusive with black and white evidence in front of them.
the story - i wish the huff post will pick this up have documented proof
I was wrongfully terminated and wrote him a letter and he did nothing about it , I had proof and emails that his Management team was lying about harassing another employee, they are going to let this man perjure himself under oath. He knows this, they blocked my letters to the board of directors i do have an open letter to corporate america ( the letter the board wll never see ) to show how Verizon bullys people and are unethical according to their own code of conduct

[Dawn Traband Fowler]

07:25 PM on 12/21/2011

At ONE time Monopolies were outlawed right?? Now it's all Wal Mart..WalGreen.. ATT.. EVen Food.. Look on the Labels.. I worked Rest/Bar, We had Mrs.Vickies Homemade Potato Chips.. after a couple yrs bag changes.. I look at small print as I do.. Frito Lays.. So if You don't look closely You think your'e still supporting small cool company and surprise.. Big Companies don't even compete anymore.. They buy the new ideas and put their Corpo name on it Or they silence it to keep hawking their CRAP...The Repubs in Congress say People Who feel this Way are "Anti Capitalist" or Anti America.. REALLY???

[winfl55]

01:11 PM on 12/21/2011

"Break up these huge corporatio­ns and we will create competitio­n, lower prices and jobs!"
That's exactly what they did with AT&T many years ago.

[boba7576]

03:03 PM on 12/21/2011

I'd love to have a choice for cable and internet .

[gwbsucs1]

01:07 PM on 12/21/2011

well somebody needs to do somethin with comcast - the "worst" cable company on the planet , and time warner which ( i believe ) owns AOL needs work as well - since this hufff post stuff - they're have been all types of interuptions

[catsdogs]

12:32 PM on 12/21/2011

-

Probing will continue until they meaningfully contribute.

Next up is Rs turn – Congress will investigate and hear about how you intend to contribute

When meaningful contributions have been completed – probes will be directed at others to ensure that they too are meaningfully contributing

-

[cali4856]

11:59 AM on 12/21/2011

Break up these huge corporations and we will create competition, lower prices and jobs!

[rvanta007]

11:33 AM on 12/21/2011

Before the in-Justice Department investigates anyone, any thing, it should investigate itself and explain to the public where is the accountability for all the losses of "Fast and Furious", the excuse of the new black panther party voter intimidation, and the lawful skill sets of secretary Holder ! . . "Fast and Furious" . . . is defined as the Justice Department and ATF, et al - "PLAYING FAST WITH TAXPAYERS MONEY AND TRUST " and the citizens becoming FURIOUS WHEN THE SCAM IS UNCOVERED ! . . . .Hey Sec. Holder, just recall all those guns you allowed to go over the border to Mexico and we will forget this ever happened !

[Dragonstalon]

11:58 AM on 12/21/2011

You do know this isn't the 1st time Eric Holder has been complicit in the murder of U.S. Citizens. He was the Assistant U.S. Attorney General that authorized the FBI to give Timothy McVeigh the explosive used in the Oklahoma city bombing. He tried covering that up as well, but luckily another U.S. Agency found the explosives first and linked it back to FBI stockpiles.

Then there is also the fact that he refuses to investigate 2008 Voter Fraud, in which Obama and Hillary Clinton had people falsifying other peoples names, falsified signatures and personal information on petitions to get them on placed on the Ballot.

[JohnGuthrieYates]

11:28 AM on 12/21/2011

If it isn't one ... it's the other. They're both just getting too big. The "competition" isn't benefiting the consumer, just the bottom lines of these telecommunications giants and the totally ridiculous salaries their CEO's have come to command.

Growth ... challenge ... let's see a more agressive push in ... India ... China ... Korea ... Europe

Using their influence and money to simply corner the market on bandwidth and buy market share ... has this sadly become the American way.

I sincerely hope the FCC jumps in on this one as agressively as they have with AT&T.

[Bill Hummel]

11:18 AM on 12/21/2011

Bigger and bigger.

[gjmjoe017]

11:03 AM on 12/21/2011

Someone needs to Probe the Justice Dept.!!!

[moltenart]

11:27 AM on 12/21/2011

Amen!!!!!

[Dragonstalon]

12:03 PM on 12/21/2011

The DOJ is too busy trying to find some "dirt" on Sheriff Joe Arpaio (sp), the tough Sheriff in Arizona. The DOJ has spent a year and 1/2 doing this "Investigation", even after ICE had done an investigation and said all the racially profiling claims and such had no merit and that Sheriff Joe's office did an exemplary job.

[gjmjoe017]

12:09 PM on 12/21/2011

Have you ever heard of reverse discrimination?We are watching it happen before our eyes with Holder and the DOJ!!

[MrDoughnut]

10:59 AM on 12/21/2011

The Programmers Guild can tell you more about Verizonand other companies. Need clues go to techinsurgent.com

[MrDoughnut]

10:57 AM on 12/21/2011

David we need you more than ever!

[MrDoughnut]

10:56 AM on 12/21/2011

Is Wal*mart the next Babylon or Goliath?

[MrDoughnut]

10:55 AM on 12/21/2011

David sleu Goliath that does not bold well for Wal*mart now does it?

[MrDoughnut]

10:54 AM on 12/21/2011

There are no secrets if GOD knows everything!