Friday, April 8, 2011

Verizon (VZ), AT&T (T) Fight Back Against FCC Roaming Decision

Verizon (NYSE:VZ) and AT&T (NYSE:T) are fighting back against the decision by the FCC to adopt automatic data roaming rules, which allow competitors unwilling to invest in wireless infrastructure to use theirs.

Tom Tauke, Verizon Communications' executive vice president of public affairs, policy and communications, said in a statement, "By forcing carriers that have invested in wireless infrastructure to make those networks available to competitors that avoid this investment, at a price ultimately determined by the FCC, today's order discourages network investment in less profitable areas. That is directly contrary to the interests of rural America and the development of facilities-based competition and potential job creation. Therefore, it is a defeat for both consumers and the innovation fostered by true competition."

Expectations are Verizon will probably legally challenge the decision.

For AT&T, they're in the midst of attempting to acquire T-Mobile USA, and so unfortunately will have to walk softly, as the implications are if they fight too hard the deal may be rejected.

It does make you wonder if the timing of the FCC was based on that event.

Verizon was trading at $37.71, falling $0.05, or 0.13 percent, as of 12:13 PM EDT. AT&T was at $30.52, down $0.02, or 0.05 percent.

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