Verizon and Comcast will face off against a Senate antitrust panel today over the carrier's plan to purchase spectrum from and enter into a business deal with several cable companies.
The hearing, which will kick off at 2pm Eastern, is titled "Harmless Collaboration or a Threat to Competition and Consumers?" and will be led by Senate Judiciary antitrust subcommittee Chairman Herb Kohl.
Randal S. Milch, Verizon's general counsel, will appear on behalf of the company and will reportedly argue that the deal helps solve the spectrum crunch without hurting competition, Bloomberg said.
"The subcommittee carefully examines questions about competition in the wireless and video markets, with the ultimate goal of protecting consumers and reducing their cable and cell phone bills, and these deals are no exception," Sen. Kohl said last month in announcing plans for the hearing.
In January, Verizon announced plans to purchase 122 Advanced Wireless Systems (AWS) spectrum licenses from SpectrumCo, LLC, a joint effort from Comcast, Time Warner Cable, and Bright House Networks.
The companies involved also signed agreements to sell each others' products and services. Comcast could bundle Verizon Wireless service with one of its packages—get Xfinity triple play plus Verizon Wireless mobile service for one price, for example. Similarly, Verizon Wireless could offer its customers access to Comcast, Time Warner, or Bright House cable and digital phone service in areas where FiOS is not available.
Detractors, however, are concerned about competition issues. Last month, T-Mobile and several consumer groups asked the Federal Communications Commission to stop Verizon from purchasing the spectrum because the deal poses "a clear threat to competition" and urged the commission not to "rubber-stamp these questionable transactions."
As noted by The Hill, two labor unions also formally opposed the deal, saying it would "effectively result in an unchecked monopoly."
Verizon, however, has argued that the deal "is in the public interest, and will address the needs of all consumers, putting spectrum to work to meet growing demand. The transfer is in line with goals in the FCC's National Broadband Plan, as well as its views on using secondary market transactions such as this one to ensure that existing spectrum is used by providers who can use it efficiently."
Also appearing at today's hearing will be David L. Cohen, Comcast's executive vice president, attorney Charles F. (Rick) Rule, Rural Cellular Association president and CEO Steven K. Berry, Free Press policy advisor Joel Kelsey, and Columbia professor Timothy Wu.
The hearing will be webcast live via the Judiciary Committee's website.
Editor's Note: This story was corrected at 5:30pm Eastern; Free Press does not have a PR firm.