tinitrd ~totes ~cnatc WASHINGTON, pc 20510 The Honorable Julius Genachowski Chairman Federal Communications Commission 445 12th Street, SW Washington, DC 20554 The Honorable Eric H. Holder United States Department of Justice 950 Pennsylvania Avenue, NW Washington, DC 20530 July 26, 2012 Dear Chairman Genachowski and Attorney General Holder: We know that the Federal Communications Commission (FCC) and the Department of Justice (DOJ) are currently reviewing proposed agreements between Verizon Wireless and four of the nation's largest cable companies, Comcast, Time Warner Cable, Cox Communications, and Bright House Networks LLC. These agreements involve Verizon's purchase of wireless spectrum from these cable companies and also joint marketing, or "agency" agreements that would allow the several parties to sell each other's services and a joint venture in which the parties agree to develop, on an exclusive basis, proprietary technologies. We have heard from a number of constituents, Maryland elected officials, labor unions, consumer advocates, and civil rights groups who are deeply concerned about the proposed joint marketing agreements. When Congress passed the 1996 Telecommunications Act, consumers were promised the benefits of increased competition between cable and phone companies, driving investment in broadband networks, creating jobs, enabling new and improved services and applications, and lower prices. But the individuals and groups who have contacted us are concerned that the proposed agency agreements between Verizon Wireless and the major cable companies, by turning former competitors into business allies, appear to renege on that promise. Most significantly, the joint marketing agreements appear to limit Verizon' s incentive to invest in its all-fiber FiOS network, potentially depriving consumers of a competitive alternative to cable's broadband and video services. Such a development, our constituents fear, could leave many communities in Maryland on the wrong side of the "digital divide". To date, Verizon has not deployed its FiOS network in a Baltimore and city officials and constituents there are concerned the company would be even less likely to make further investments in the FiOS network if the proposed transaction is approved. And Verizon' s recent announcement that it will no longer sell stand-alone DSL services leaves consumers with even fewer alternatives. People of color and lower-income households in urban and rural parts of Maryland will be disproportionately affected by the decreased incentives to invest in continued "build-out" of the FiOS network. 0938 We have also heard from Communications Workers of America (CWA) officials and scores of rank-and-file m mbers who are de ply concerned about the impact of the proposed transaction on middle class jobs. By reducing incentives to invest in expanding the FiOS network or competing net orks the propo d transaction could eliminat a many as 72 000 jobs that otherwise would be needed to build maintain service and sell network services and manufacture the equipm nt and fiber nece ary to deploy comp ting networks. As you review the propos d Verizon/cable company tran action, we ncourage you to consider most carefully the comments the FCC and DOJ have received raising concern about the transaction s potential impact on comp tition consumer and job. We hop that you will endeavor to protect the public interest in cro s-platform competition that drives lower prices and higher quality services and ensures that all Americans - including residents and bu inesses in Baltimore and across the re t of Maryland - have access to the most advanced communications technologie and services at affordable price . Thank you for your consideration. If you have any questions regarding this matter feel free to contact us or have your staff contact Gray Maxwell (gray maxwell@cardin.senate.gov) or Jean Doyle (jean doyle@mikulski.senate.gov). incerely, Barbara A. Mikulski Uoited States Senator BLC: dgm &d_/'_ Afenjarnin L. Cardin United tates Senator