Communications and entertainment provider Verizon (NYSE:
) has received federal approval on a deal with four cable
companies. The authorization was revealed Friday, despite the fact
that the deal could potentially reduce consumer choices and
increase prices for internet, phone and television services.
Verizon has had a busy week. On Wednesday, the wireless provider
and Samsung announced the latest addition to the Samsung Galaxy Tab
portfolio, the Samsung Galaxy Tab(
) 2 (7.0), now available in Verizon Wireless Communications Stores
and online. Galaxy Tab 2 customers will have access to the Verizon
Wireless 4G LTE network, which covers more than 75 percent of the
U.S. population and will soon be available in more than 400 markets
On August 3,
that Verizon has been fighting an uphill battle when it comes to
purchasing spectrum from companies slated to become competitors.
has claimed that the famous mobile device retailer will have to
bend over backwards to finalize deals with the likes of Comcast
) and Time Warner Cable (NYSE:
Monopolizing the wireless and cable industries has also become a
slight concern as Verizon and Comcast dominate each, respectively.
While new and improved technology would likely come from joint
ventures between the two, antitrust regulators do not look fondly
upon cross-marketing and promotion between the two giants.
However, the Justice Department appears to be less concerned
about a potential monopoly. Friday's approval serves as a statement
that the government cannot do much to reduce rapidly rising
The Washington Post
, conditions have been imposed on the $3.6 billion deal, but they
seem fairly superficial. The details of the deal aim to preserve
competition in areas where Verizon's FiOS service already competes
with cable services such as Comcast's Xfinity for customers.
However, that is not the case in much of the U.S.
Due to lacking competition, millions of customers are given no
real choice in terms of service providers. As a result, they are
left with a "pay or suffer" situation, but Federal officials felt
that could not block the deal in good conscience because the
companies are in different businesses.
On Friday morning, Verizon traded at about $44.10, down roughly
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