Something new and strange is starting to occur. Suddenly Verizon and Verizon Wireless are competing. What? That’s right. Let’s take a closer look at this strange story.
Until now Verizon and Verizon Wireless were separate companies, but acted to benefit each other. Walk into a Verizon Wireless store and see Verizon FiOS TV service on display. It said the company worked well together. That may be changing.
Suddenly the wireless data spectrum shortage is causing strange actions.
The cable television companies like Comcast, Time Warner and Cox are selling their wireless spectrum to Verizon Wireless. Whether or not that is allowed is yet to be seen. This would help Verizon Wireless, but not the rest of the industry.
However that is not the only thing that will happen with this deal.
This deal would be just the beginning of a new relationship between Verizon Wireless and the cable television industry which they compete with.
The two competing sides are coming together. That may be good for them, but is that good for the competitive marketplace?
Partners and competitors? That’s the way it looks.
Verizon sells telephone, Internet and their own IPTV called FiOS. They compete directly with the cable television industry on the same services. One wins and the other loses. This keeps prices lower, innovation higher and customer service better.
If Verizon Wireless acquires the spectrum from the cable television industry they will sell wireless telephone, wireless Internet and cable television from Comcast, Time Warner and Cox.
How will these two previous competitors affect the marketplace? Will prices stay lower, innovation stay higher and customer service stay better?
But that’s not all. Next these cable television companies may start to sell wireless services from Verizon Wireless.
These two sides, two fierce competitors now getting together as partners?
Partners and competitors.
And what will come next?
We have to think through this situation before approval. Is it good for the marketplace, or just for these companies?
This new direction will have both positive and negative affects on the marketplace. We have to take the time to sort through what the marketplace will look like going forward.
I have no opinion yet, other than to say we need to really think this through before starting this new chain of events that will be as difficult to stop as a nuclear explosion in progress.
An interesting turn of events. This story has just begun.
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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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Phone 770-579-5810 Email jeff@jeffKAGAN.com
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Contact InformationJeff Kagan
Title: Tech Analyst ~ Industry Analyst ~ Wireless Analyst ~ Telecom Industry Analyst
Jeff Kagan Tech Analyst, Columnist and Author
PO Box 670562
Marietta, GA 30066
Phone: 770 579 5810