Comcast has new wireless strategy in deal with Verizon Wireless; Why its much more than a little spectrum sale
Comcast, Time Warner Cable, and Bright House Networks Sell Advanced Wireless Spectrum to Verizon Wireless for $3.6 Billion (PR Newswire)
This apparently is Comcast's new wireless strategy. Knocks off speculation that it might have been interested in Clearwire, T-Mobile. Comcast will receive about $2.3 billion; companies will resell each other's services, and start joint venture to develop new innovations.
More to come.
With Verizon’s $3.6 Billion Spectrum Deal, Cable and Wireless Inch Closer (New York Times: Media Decoder)
Bernstein analyst Craig Moffett: “This is a REALLY big deal. Maybe the most significant deal the industry has ever seen. And that’s a pretty amazing thing to say for a deal where less than $4 billion changes hands.”
Comcast and Verizon Merge, Without Merging (MarketWatch Video)
Interview with All Thing D's Peter Kafka.
Gigaom's Stacey Higginbotham sees the deal as "the end of broadband competition".
Comcast Cable President Neil Smit's blog post on the deal.
CNET reports that Cable's partnership with Clearwire will soon end; turns out that Comcast had only sold Clearwire service to 30,000 of its subs.
Could an additional benefit be a reduction or perhaps eventual elimination of competition between Verizon's FiOS and Cable in some areas? Both companies say this won't happen, but I wonder.
Comcast's Government Relations crew (lobbyists) in DC may have a tough job on their hands selling this deal to the FCC and FTC.
Comcast up close to 4% on the day; Verizon basically flat.