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A proposed spectrum deal between Verizon Wireless and several cable companies would hurt competition and put you at risk of paying higher prices, says Consumers Union, the advocacy arm of Consumer Reports.
Today, the Senate Judiciary Subcommittee on Antitrust is holding a hearing on the sale. The proposal would let Verizon purchase spectrum licenses from cable companies including Bright House, Comcast, Cox, and Time Warner, and joint marketing agreements tied to the deal would let the cable companies and Verizon sell one another's products.
Consumers Union sent a letter to the committee asking them to look closely at the proposal. Parul Desai, policy counsel for Consumers Union, said:
Once again, consumers are faced with the possibility of less market competition, fewer choices, and companies with little incentive to lower prices across multiple markets. These joint-marketing arrangements are effectively agreements to not compete. They would essentially divide up the current broadband, video, and wireless markets.
Consumers Union also points out that Verizon will have no incentives to build out its FiOS network, a competitor to cable companies. And as DSL becomes less attractive due to slower speeds, consumers will be faced with only one option for high-speed broadband—the local cable provider.
To see how Verizon Wireless stacked up against other cell phone services check out our Cell phone service Ratings (available to subscribers), including our recommended services. And for our cable TV subscription buying advice, see How to choose among cable, satellite, and telco TV services, plus our TVs and services guide.
Previously: Verizon Wireless deals with cable companies investigated
Verizon-Cable Deal Puts Consumer Pocketbooks, Competition at Risk [Consumers Union]
—Maggie Shader
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