Verizon’s $1 billion deal to improve network coverage faces resistance from regional carriers | Infinium-tech
The FCC recently approved a $1 billion deal between Verizon and USCellular. The former purchased several cellular spectrums, which help the carrier strengthen its coverage in rural areas. The deal includes AWS-1, AWS-3 and PCS spectrum licenses covering approximately 8% of the US population.
However, some in the industry are opposing the deal and asking the FCC to review its decision. The challenge is being led by the Rural Wireless Association (RWA), which argues that the deal is part of a larger pattern of larger carriers absorbing spectrum and cornering smaller businesses that are unable to compete. The group says Verizon, AT&T and T-Mobile are all culprits.
According to the RWA, access to spectrum is critical for regional carriers to grow their networks in rural areas, so the Big Three’s consolidation of spectrum limits their ability to compete and grow.
Additionally, the FCC did not formally consider the input of RWAs when approving the deal between Verizon and USCellular.
On the other hand, existing Verizon customers will benefit from the deal as they will see improvements in their coverage in rural areas. This will be a tough task for the FCC to overcome.
Leave a Reply