Is the DOJ holding up Verizon's deal to buy cable spectrum?

The U.S. Justice Department is holding up Verizon Wireless's $3.9 billion bid to buy wireless spectrum from a consortium of cable operators, the Wall Street Journal reported Friday.

The Federal Communications Commission, which also has to sign off on the deal, is ready to approve the deal, sources have said. Verizon announced in December that it planned to buy about 20 MHz of Advanced Wireless Services wireless spectrum from a group of cable companies that includes Comcast, Time Warner Cable, Cox Communications and Bright House.

The deal is the largest spectrum transfer the FCC has ever considered outside of a merger. Verizon has worked closely with the FCC to address its concerns over controlling too much spectrum in certain markets. In April it agreed to sell some of its 700 MHz spectrum in the lower A and B blocks. And last month it announced a deal to sell T-Mobile USA some of its existing AWS spectrum. Verizon's promised spectrum divestitures are contingent on upon the completion of the license transfers from the cable operators.

Sources close to the FCC say that the agency has been pleased with Verizon's responsive and willingness to work with the agency to address concerns over concentrating too much spectrum under one carrier. Most experts are confident that the FCC will sign off on the deal with only a few other minor conditions, which would likely include data roaming requirements and a shorter time frame for building the network usin... [Read more]