Senate joins Justice Department in looking into Verizon spectrum deals

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The Senate has launched an investigation of its own into Verizon Wireless' recent spectrum acquisitions from cable companies. The Justice Department has already started investigating the deals to determine if Verizon is amassing too much spectrum and preventing competition from acquiring it.

In December, Verizon announced two deals worth billions of dollars to purchase spectrum licenses from cable companies Comcast, Time Warner Cable, Bright House Networks, and Cox Communications. The transactions would result in Verizon gaining more spectrum to use in the AWS frequencies, which it claims it needs to expand its 4G LTE service throughout the country. Verizon has yet to make use of any of the AWS spectrum it already owns, as its 4G LTE network has been built on the 700MHz spectrum it purchased at auction in 2008.

"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 cellphone bills, and these deals are no exception," noted Senator Herb Kohl, who is chair of the subcommittee that is launching the investigation.

Sprint and regional carriers have spoken out against the massive amounts of spectrum that market leaders AT&T and Verizon Wireless have seemed to amass over the past few years, complaining that the deals make it much more difficult for smaller carriers to launch their own networks. AT&T's failed attempt to purchase T-Mobile USA was also a grab for more spectrum, which it claimed to need for its own 4G LTE build out. AT&T withdrew its request to purchase T-Mobile after it faced intense scrutiny from the government over the deal. [via Reuters]