Verizon (VZ) Lobbies to FCC for Spectrum Deal Approval; Analysts Remain Bullish
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Price: $39.22 --0%
Rating Summary:
18 Buy, 30 Hold, 2 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 4 | Down: 8 | New: 1
Rating Summary:
18 Buy, 30 Hold, 2 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 4 | Down: 8 | New: 1
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Verizon (NYSE: VZ) shares are trading in positive territory Monday following a filing by the company which discloses it is seeking approval for its recently announced spectrum deal with a group of cable companies.
In a note to the Federal Communications Commission Monday, Verizon said the $3.9 billion deal with Comcast (Nasdaq: CMCSA), Bright House Networks, Time Warner Cable (NYSE: TWC), and Cox Communications, would aid in the nation's "congested networks." Verizon hinted at spectrum constraints in its own network which might start as early as 2013 and accelerate into 2015.
The deal also calls for a Verizon subsidiary and the cable companies to enter a cross-marketing agreement, which the FCC is reviewing. Verizon thinks the FCC should drop this investigation with the U.S. Department of Justice currently scrutinizing that leg of the deal.
The deal was originally made in response to AT&T's (NYSE: T) bid for T-Mobile from Deutsche Telekom. With that effort ending last December on federal resistance, T-Mobile has become an advocate against Verizon's deal going through. However, the WSJ noted Monday analysts largely expect Verizon to secure the deal, as the spectrum being bid on has mostly been unused and wouldn't include the transfer of customers.
Shares of Verizon are up about 1 percent Monday afternoon.
In a note to the Federal Communications Commission Monday, Verizon said the $3.9 billion deal with Comcast (Nasdaq: CMCSA), Bright House Networks, Time Warner Cable (NYSE: TWC), and Cox Communications, would aid in the nation's "congested networks." Verizon hinted at spectrum constraints in its own network which might start as early as 2013 and accelerate into 2015.
The deal also calls for a Verizon subsidiary and the cable companies to enter a cross-marketing agreement, which the FCC is reviewing. Verizon thinks the FCC should drop this investigation with the U.S. Department of Justice currently scrutinizing that leg of the deal.
The deal was originally made in response to AT&T's (NYSE: T) bid for T-Mobile from Deutsche Telekom. With that effort ending last December on federal resistance, T-Mobile has become an advocate against Verizon's deal going through. However, the WSJ noted Monday analysts largely expect Verizon to secure the deal, as the spectrum being bid on has mostly been unused and wouldn't include the transfer of customers.
Shares of Verizon are up about 1 percent Monday afternoon.
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