DOJ reportedly investigating Verizon-cable spectrum deal

The $3.6 billion deal Verizon Wireless (NYSE: VZ) struck last month to acquire Advanced Wireless Services (AWS) spectrum from Comcast (Nasdaq: CMCSA), Time Warner Cable (NYSE: TWC) and Bright House Networks is being investigated by the U.S. Department of Justice, Bloomberg reported.

DOJ's antitrust division is probing whether Verizon's deal with the cable MSOs, jointly operating under the auspices of SpectrumCo, constitutes a restraint of trade, according to the report, which cited an anonymous source. Verizon also separately reached a $315 million deal with Cox Communications last week to acquire AWS spectrum from the cable MSO.

Asked to comment on the report that DOJ was probing the spectrum deal, Verizon spokesman Ed McFadden told FierceCable, "We have received no information on which to comment."

In addition to the spectrum deals, Verizon has announced agreements that could allow Comcast, Time Warner Cable, Bright House and Cox to market Verizon mobile voice and data services to their cable subscribers. Those deals could also one day see the cable MSOs market pay TV programming to Verizon customers.

On Monday, Verizon submitted an application at the FCC to transfer the spectrum licenses. Verizon told the FCC that it believed its review should be limited. "Consumers will continue to have all the same choices among wireless providers that they do today," Verizon wrote in the FCC application.

For more:
- Bloomberg has this story
- The Washington Post has this story

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