AL FRANKEN
MINNESOTA
tinitrd ~tatrs ~rnatr
WASHINGTON, DC 20510-2309
January 31, 2012
SUITE
SH-309
202-224-5641
Chairman Julius Genachowski
Federal Communications Commission
445 1ih Street, SW
Washington, DC 20554
Attorney General Eric H. Holder, Jr.
U.S. Department of Justice
950 Pennsylvania Avenue, NW
Washington, DC 20530
Dear Chairman Genachowski and Attorney General Holder:
I have been following with interest Verizon Wireless' announcement that it is seeking the
Federal Communications Commission's (FCC) consent to acquire licenses from Cox
Communications and SpectrumCo, LLC ("Spectrum Co"). SpectrumCo is an entity that is owned
primarily by the nation's two largest cable companies, Comcast Corporation and Time Warner
Cable, Inc., and Verizon Wireless is the nation's largest mobile-phone carrier. I am concerned
that these transactions will greatly impact how much consumers pay for their wireless phone,
high-speed Internet, and cable television service, and I urge you to closely examine all of the
terms and conditions of these deals.
Verizon's plan to purchase spectrum from these cable companies will further concentrate
ownership of the nation's airwaves in the hands of a single company. These are very
complicated transactions-not just because of the size of the spectrum deals-but also because it
appears that these companies have agreed to enter into joint-marketing arrangements. The exact
nature of these marketing agreements has not been made public, but based on press reports and
the companies' statements, it appears as though the companies have agreed to promote, market,
and sell one another's products and services. This is very troubling, because it would seem to
carve up the marketplace for cable, broadband, and wireless phone service. These joint-
marketing agreements will turn these rival companies into partners, rather than competitors. I
fear this will ultimately mean less competition, less choice, and higher prices for consumers.
When Congress chose to deregulate the telecommunications industry fifteen years ago, it
did so with the hope that cable companies would become competitors to the dominant phone
companies. These deals indicate that cross-platform competition will likely never occur, and
instead consumers will likely see a push towards expensive bundled "quadruple play" services
that will only push their monthly telecommunications bills ever higher. The trend of rising
cable, wireless, and Internet rates in this country is unacceptable, and I urge both of your
agencies to carefully examine these transactions to ensure they will not diminish competition in
media and telecommunications markets. I specifically urge the Commission to examine whether
the marketing components of these transactions will serve the public interest.
These transactions warrant close examination by the Senate Judiciary Committee's
Subcommittee on Antitrust and Competition Policy, and I have also urged Senator Kohl to hold a
hearing so that we can further analyze the competitive impacts of these deals.
WWW.FRANKEN.SENATE.GOV
0134
Thank you for your prompt and careful consideration of my views on this matter. I look
forward to your response.
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