Verizon Wireless is negotiating the sale of assets to close a cable TV deal.
April 19, 2012- Verizon Wireless has offered to sell off some assets to get regulatory approval. The company wants its purchase of $3.9 billion of wireless airwaves from a number of cable television providers to be approved by the FCC. The largest carrier the U.S has, said on Wednesday it would sell its 700 megahertz airwave if the Justice Department and Federal Communications Commission agree to its recent cable deal.
Rivals such as T-Mobile along with unions and some watchdog groups have resisted to the new deal by Verizon Wireless. They say Verizon and other cable companies would build up too much power in the market.
The offer to sell assets suggests that Verizon is wanting to forestall the same resistance AT&T received from regulatory agencies in its failed bid to takeover T-Mobile for $39 billion. Concerns the deal would stifle market competition, prompted regulatory agencies to block the sale.
The airwaves sale by Verizon, which amount to over half the country, could bring in close to $4.5 billion, said analysts. The spectrum covers entire cities such as Los Angeles, Chicago, Houston and New York.
Verizon purchased the spectrum in an auction sponsored by the FCC in 2008. A company spokesperson said the spectrum has not been used by the company and said the company prefers that its cable airwaves build out its network of mobile broadband.
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