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NEWS
Federal Communications Commission

News Media Information 202 / 418-0500

445 12th Street, S.W.

Internet: http://www.fcc.gov

Washington, D. C. 20554

TTY: 1-888-835-5322

This is an unofficial announcement of Commission action. Release of the full text of a Commission order constitutes official action.
See MCI v. FCC. 515 F 2d 385 (D.C. Circ 1974).

FOR IMMEDIATE RELEASE:

NEWS MEDIA CONTACT:

August 16, 2012
Tammy Sun, 202-418-0505
Email: tammy.sun@fcc.gov

STATEMENT OF FCC CHAIRMAN JULIUS GENACHOWSKI ON

VERIZON WIRELESS-SPECTRUMCO AND RELATED TRANSACTIONS

“A rigorous review by the Federal Communications Commission and Department of Justice
staffs revealed that the deal as proposed by Verizon Wireless and the cable company owners of
SpectrumCo posed serious concerns, including in the wired and wireless broadband and video
marketplaces. In response to the agencies’ objections, the parties have made a number of
binding pro-competitive commitments and will also make fundamental changes to their
agreements. Because of these substantial undertakings and in light of the Consent Decree the
companies executed with the Justice Department today, I believe the Commission should now
approve this transaction, and I will be circulating a draft order to my colleagues that would do so.
“Specifically, Verizon Wireless has undertaken an unprecedented divestiture of spectrum to one
of its competitors, T-Mobile, and has committed to accelerate the build-out of its new spectrum
and enhance its roaming obligations. In addition, the companies’ commercial agreements will be
modified to, among other things, preserve Verizon's incentives to build out FiOS, increase
wireless competition, and ensure that the proposed IP venture is pro-consumer and that its
products cannot be used in anti-competitive ways.
“Approval of the substantially modified transaction will promote the public interest and benefit
consumers in several ways. By advancing U.S. leadership in 4G LTE deployment, the
transaction marks another step in our effort to promote the U.S. innovation economy and make
state-of-the-art broadband available to more people in more places. The transaction will preserve
incentives for deployment and spur innovation while guarding against anti-competitive conduct.
And vitally, it will put approximately 20 megahertz of prime spectrum—spectrum that has gone
unused for too long—quickly to work across the country, benefiting consumers and the
marketplace.
“I look forward to working with my colleagues toward a final Commission vote in the near
future.”
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