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The FCC recently approved a $1 billion deal between Verizon and UScellular. The former purchased several cellular spectrums, which help the carrier strengthen its coverage in rural areas. The deal includes AWS-1, AWS-3 and PCS spectrum licenses covering roughly 8% of the US population.
However, some people in the industry are opposing the deal and are asking the FCC to review its decision. The challenge is being led by the Rural Wireless Association (RWA), arguing that the deal is just part of a larger pattern of big carriers absorbing spectrum and cornering smaller businesses, which are unable to compete. The group says Verizon, AT&T and T-Mobile are all offenders.
According to RWA, access to spectrum is crucial for regional carriers to develop their network in rural areas, so the big three’s consolidation of spectrum limits their ability to compete and grow.
Additionally, the FCC didn’t formally consider RWA’s input when approving the deal between Verizon and UScellular.
On the other hand, existing Verizon consumers will benefit from the deal as they will see their coverage improve in rural areas. That’s going to be a tough nut to crack for the FCC.
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