More wireless spectrum
has been explored in the cable industry. Verizon has signed a deal with Cox and
this deal is all about acquiring wireless spectrum in exchange for $315
million. Verizon has earlier cut spectrum deals with other cable companies.
According to the Multichannel News, Cox Spectrum covers 28 million people and
if outrageously added, Cox will not require it anymore since it has already
taken the decision of getting out of the wireless business
Verizon has made a
deal that is expected to work wonders. According to the terms and conditions of
the deal, Verizon is supposed to acquire AWS spectrum that was purchased during
the AWS auctions. Verizon has signed this deal with Time Warner Cable, Comcast
and Bright House Networks. Here the nation’s wireless operator will buy the
airwaves that are unused and that too from the top cable providers of the
nation. For mobile players, having more spectrum is mandatory for meeting
demands.
Even now, the entire
picture is cloudy as Verizon and the other cable companies have got down
together to sign some undisclosed “agreements”. The secret behind the
establishment of product and partnership by two companies will be reflected in
these agreements. In the last 10 years, it was noticed that AT&T and
Verizon have both managed to buy around 75 percent of the spectrum that was
already put on auction. More than 85% of the spectrum that was put on auction
in the last decade is in the control of the Big Four Carriers.
Spectrum is one of
the unavoidable barriers that are an entry for anyone who is planning a
wireless network. Also, getting it approved for the mobile broadband network is
an expensive task. There is one more interesting twist in the deal we have been
talking about here and the twist is, that Verizon wireless and cable companies
have agreed to sell each other’s products.
This can be seen as a rare
amalgamation for the two industries that stand in fierce competition to each
other. On the other hand, a consumer advocacy group has opposed
AT&T-T-Mobile merger. Here the spectrum sale is anticipated to be a good
thing because the airwaves will finally go into the hands of the company that
is expected to make good use of them.
Verizon has already
gained a considerable amount of new spectrum in a time when the smaller competitors
of Verizon, like AT&T are vying hard to keep up with the growth that was
always in demand. Verizon along with the cable companies, led by none other
than Comcast will take pride in forming a joint venture of “innovation
technology”. It’s under this particular venture that the companies will target
devising new and exciting products eventually integrating cable wireless
technology.
Finally, the big
news of Cox becoming a part of Verizon is all set to turn heads in the cable
and wireless industries including technology involved in high speed internet.
The Cox deal is nothing less than the icing on the cake, considering Verizon’s
strong hold as the leading wireless services provider. However, critics who
can’t be found supporting this notion also believe that if Verizon becomes a
monopoly market, rates might just go up unbelievably!
About the Author:
The above article is a guest post and is composed and edited by Shannen D.
She is associated with many technology and designing communities including
Broadband Expert as their freelance writer and adviser. In her free time she
writes articles related to high
speed internet, technology, mobile applications, etc.
