Comment on Verizon, Comcast Cross-Selling | Jeff Kagan Tech Analyst

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Jeff KAGAN

Tech Analyst

     

Verizon Wireless and Comcast have started cross-selling their services and this has left many scratching their heads.

What are these two competitors actually doing? They aren’t competing. They are partnering. And if their proposal is approved they will continue being partners and not competitors.

This is confusing the heck out of customers, investors, workers, partners and of course regulators.

Walk into a Verizon Wireless store and expect to still see Verizon FiOS television and you are surprised it’s not there. Instead you can sign up for Comcast services. What?

This is not the way competition is supposed to happen. Competition keeps prices low and innovation and customer service high.

Non-competition like this works against the consumer. It looks like this is the path Verizon Wireless and Comcast, Time Warner and Cox are on.

Verizon Wireless and Comcast are selling each others services in 21 states so far.

This is taking place right under the regulators noses when they are very uncomfortable with this whole deal.

This is a two part story.

Part one is Comcast, Time Warner and Cox trying to sell their wireless spectrum to Verizon Wireless and not putting it up for bid to the entire industry.

Part two is this growing partnership between Verizon Wireless and Comcast which makes no sense to anyone outside these two companies.

This has the potential to upset the competitive apple cart and to fundamentally change the competitive dynamics of the industry, for better and for worse.

Do we want this? Are regulators ready to approve this transformation?

It’s this non-compete agreement between Comcast and Verizon Wireless that have really put a wrench in the whole approval process.

And it’s not just about Comcast. Verizon Wireless has also started cross-selling with Time Warner Cable and Cox.

Bright House Networks is the only company involved with this spectrum deal that is not partnering with Verizon Wireless, so far anyway.

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Please attribute to Jeff Kagan, Tech Industry Analyst with www.jeffKAGAN.com

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Jeff KAGAN| Tech Industry Analyst www.jeffKAGAN.com

Analyst sharing perspective on the changing industry for 25 years

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