Verizon is reportedly planning a mobile
video service if the government clears its multi-billion dollar spectrum and
marketing deal with four cable operators.
Verizon Communications CEO Lowell McAdam
told The Wall Street Journal that if the deal closes, it may launch a service by year-end that lets
subscribers of Verizon Wireless, FiOS and its cable partners watch some paid
content on their smartphones and tablets.
“We could have something out that
would be the beginnings of an integrated offering in time for the
holidays,” he told the publication.
If the service comes to fruition, it may
allow consumers to purchase specific content instead of paying for bundled
channels, the way content is traditionally packaged in the paid television
market.
Verizon Wireless is working to convince
the FCC and Justice Department to approve its $3.9 billion purchase of AWS
spectrum from Cox Communications, Time Warner Cable, Bright House Networks and
Comcast. The companies also forged a marketing arrangement that would allow
them to cross-sell each other’s products.
Verizon said it needs the cable-owned
airwaves to add capacity to its LTE network and has argued that its FiOS
product will remain competitive even as it moves to sell other companies’ cable
service in its own stores.
Opponents say the deal would consolidate
too much spectrum with Verizon and have questioned whether the marketing deal
amounts to a non-compete agreement.
Last week, five cities in the Northeast
voiced concerns that Verizon would have “little incentive” to expand FiOS to
their communities if its marketing arrangement with cable operators went
through.
