In what is sure to be another terrible deal for American citizens, Stop the Cap! reports on a pact between the biggest cable providers and Verizon to cross sell services and not compete in each other's playpens. How's that telecommunications deregulation thing working out for us all, eh?
I can't believe this is what free market competition in a deregulated industry looks like:
All three cable operators have effectively signed a non-aggression treaty with Verizon Wireless, agreeing to sell their unused wireless spectrum acquired by auction in 2006 at a 50% markup to Big Red. In return, Verizon will market cable service to wireless customers. It’s the ultimate non-compete clause so wide-reaching, Verizon stores will soon be selling Time Warner Cable right next to Verizon FiOS, something unheard of in the telecommunications marketplace.
Fortunately, someone is paying attention:
“A flag is raised when two rival networks move to start selling each other’s services,” a person familiar with the concerns of federal antitrust officials told the Washington Post. “They lose their desire, impetus, to compete. That is a big antitrust flag.”
I can only hope there will be a forum for public comment when the time comes. Like the AT&T purchase of T-Mobile, what a terrible deal for citizens. (Note: Not consumers -- That word dehumanizes all of us.)