U.S regulator raises concerns over Verizon’s spectrum purchase (USA)
The U.S regulators have raised concerns over Verizon Wireless’s $3.6 billion plan to buy airwaves from cable providers claiming that the purchase may harm competition in the wireless market, according to a report by BN.
As per the report, Steven K. Berry, chief executive officer of the Rural Cellular Association, said that the U.S. Federal Communications Commission and Justice Department are examining whether the acquisition would make it harder for Verizon’s rivals to expand wireless networks.
Both the FCC and the Justice Department’s antitrust division must approve the airwaves agreement. Regulators say they are trying to make sure the market remains competitive to preserve consumer choice and prevent a monopoly that could lead to higher prices.
The report reveals that Verizon has said consumers will benefit from its purchase of spectrum because the company will be able to provide improved wireless service. Verizon expects the purchase to be approved by the FCC and Justice Department by mid-summer.
FCC Calls for Comments on the Proposed USF Cap
As the FCC called for comments regarding the Federal Joint Board’s recommendations for capping the Universal Services Fund (USF), wireless carriers and rural telecom advocacy groups fired their objections at the regulatory body.
The Rural Cellular Association (RCA) opposes the cap saying that it would discriminate against competitors to rural landline phone companies. In a statement directed at the FCC, the RCA said, “Economic development and prosperity in rural areas is tied directly to the availability of modern infrastructure in those areas. In recent years, many RCA members have made service commitments to rural areas and have qualified to receive USF support. But there is much more wireless network construction needed in rural areas.”
The Federal Joint Board recommended an emergency cap on the amount any eligible carrier could receive from the fund. The Board recommended that the cap be in place for one year while the FCC works to overhaul the entire USF system.
Critics of the proposed cap claim that it will hurt wireless carriers in rural areas far more than wireline companies. CTIA claims that the wireline carriers have benefited far more from the USF, receiving roughly $24 billion, while wireless carriers have only received $2 billion.
The FCC called for all comments to be submitted two weeks after the release of the proposed rulemaking was announced on Monday.
