The United States Justice Department approved a deal struck by Verizon Wireless to purchase spectrum from the country's largest cable operators, but officials also required that the agreement be altered to protect against higher prices for consumers.
The department said that the deal, unamended, could hinder quality and lead to higher costs. Verizon will pay $3.6 billion for wireless airwaves owned by Time Warner Cable, Comcast, Cox Communications and Bright House Networks.
Its decision comes after an investigation by the Federal Communications Commission into whether the spectrum transfer adhered to antitrust laws. Final approval will still be subject to the F.C.C.
The spectrum purchase won't j ust allow Verizon to expand its wireless data network, but will also allow the cable partners to market their services in Verizon retail stores. The agreements could speed the way to cellphone, cable, Internet and home phones (if those still exist) appearing on a single monthly bill.
Comcast has already set up branded kiosks in select Verizon Wireless stores to offer customers discounts if they sign up for the cable company's “triple play†of Internet, phone and cable service upon purchasing a Verizon mobile device.
“We are pleased that the consent decree that we have negotiated with the Department of Justice preserves the most important goals of the agreements, including Comcast's ability to market Verizon Wireless services,†David L. Cohen, Comcast's executive vice president said in a statement.
Amy Chozick is The Times's corporate media reporter. Follow @amychozick on Twitter.
