Do we want the FCC busting up joint ventures too?

Posted December 25th, 2011 in cable television, spectrum, Verizon, wireless communications and tagged , , , , by Alton Drew

The editorial board at The New York Times is having issues with a non-issue. A joint venture between Verizon and a number of cable companies, including Comcast and Time Warner, has the national paper of record in a slight tizzy. Less than two weeks after tasting victory from AT&T’s withdrawal of its bid to buy T-Mobile USA, The Times is questioning the impact the Verizon joint venture would have on wireless competition.

Verizon bought some spectrum, the nectar of all that is wireless, from Comcast and Time Warner. Comcast and Time Warner will also offer bundled packages of video and Verizon wireless services and Verizon will offer its subscribers calling packages that include cable service. Not bad if you believe in convergence and bundling.

The New York Times, on the other hand, wants more Federal Communications Commission oversight to ensure wireless competition. The New York Times, as a newspaper is representative of a losing business model, is instructing the wireless market on competition? Wow.

What Verizon and the cable companies have proposed is merely good business. Both represent access channels to consumers. They are already inside the homes of consumers who may need the others services. Why continue building out to homes when your competitor agrees to help sell your prime product over his channel in exchange for you doing the same for him?

Can anyone say that they are ready to see government try to substitute its “business judgment” for that of Verizon’s?

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