All of a sudden both T-Mobile and MetroPCS are opposed to the Verizon Comcast wireless data deal.
Verizon and Comcast like this deal. Everyone else does not. I believe we will see more companies jumping in and agreeing with T-Mobile and MetroPCS.
I understand why Verizon Wireless and Comcast are excited about their announced deal. Verizon Wireless would acquire Comcast wireless spectrum, and in return Comcast cable television services would be sold at Verizon Wireless stores. And this is just the first few things to come from this partnership.
Others would likely include Comcast selling Verizon Wireless services and devices and on and on.
What’s not to get excited about, right? While that is true if you are Verizon Wireless or Comcast, but what about other competitors and the entire marketplace?
That is a different story. That is where the opposition is coming from.
Should everyone else in the industry be as excited? Well, obviously the answer is no, and for several different reasons. Here are a few of them.
This spectrum sale should be handled differently. How much is this going to cost Comcast in lost profits by giving this spectrum to Verizon without putting it out for bid. In this marketplace where wireless data spectrum is in such short supply it should be able to earn much more by putting it out for bid.
So Verizon investors should be happy, but Comcast investors must be livid.
Could this partnership be the first step in an eventual Comcast Verizon merger? Perhaps some day.
Would this give the new Comcast Verizon partnership an unfair advantage in the marketplace? Definitely yes.
Over the last four years the industry is suddenly changing. All of a sudden we realize there is not enough wireless data to go around.
That means individual carriers like AT&T and Verizon are trying to acquire as much as they can, as quickly as they can, to protect their interests.
There is nothing wrong with that sentiment if you are Verizon, but what about the other competitors and in fact the entire industry? What are they going to do?
Rather than wasting so many quarters and years debating this individual issues like this Verizon Comcast deal, or last years AT&T T-Mobile deal, or anything else that comes along, we should focus on and solve the real problem.
When you have a cold do you want to be healed or just take a decongestant to clear up your nose? Of course you want to be healed.
What Verizon and AT&T have been wasting ours and their time doing is taking a decongestant. What we need is an industry wide cure.
Let’s focus on an industry wide solution. Like pooling the wireless data spectrum together and letting every carrier have “equal access” to it. Then they can simply pay for its use.
That’s what we should be focused on.
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These comments may be quoted in news stories. They are being sent by email list and on the web.
Please attribute to Jeff Kagan, Tech Analyst with www.jeffKAGAN.com
If you would like to discuss, call me at 770-579-5810 or send an email to jeff@JeffKAGAN.com
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Jeff KAGAN| Tech Analyst www.jeffKAGAN.com
Analyst sharing perspective on the changing industry for 25 years
~ Also Columnist, Author, Consultant, Speaker
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Contact InformationJeff Kagan
Title: Tech Analyst ~ Columnist ~ Industry Analyst ~ Wireless Analyst ~ Telecom Industry Analyst
Jeff Kagan Tech Analyst, Columnist and Author
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Phone: 770 579 5810