
Buried under the roar of CES recently was a little swipe at Comcast by Republican FCC Commissioner Robert McDowell, who suggested that Comcast may have misled regulators by pretending to acquire precious AWS spectrum licenses for need, only to then subsequently squat on it. Alongside Time Warner Cable and Charter, Comcast recently offloaded that spectrum to Verizon for $3.6 billion. McDowell's concerns were triggered by a comment by Comcast's CFO, who stated the company "never really intended to build that spectrum" -- which McDowell argued means Comcast lied about intent.
To try and defuse the situation Comcast's top lobbyist and policy man David Cohen took to their blog this week, claiming their CFO's comment was "a shorthand reply on a subject with a long and complex history." According to Cohen, Comcast had every intention of building a wireless network, but found (just like Cox Communications did) that jumping in and competing with the likes of Verizon and AT&T simply wasn't feasible and wouldn't give adequate returns:
Focusing on one shorthand sentence in a lengthy Q&A simply does not tell the story. The complete picture is very clear: we acquired spectrum with the intention of using it to help position the company to offer wireless services, we analyzed thoroughly whether we could build a business case to do so, but ultimately concluded, as a business matter, not to become a standalone, facilities-based wireless provider, and having reached that decision, considered other alternatives that would promptly allow for the efficient use of that spectrum to improve wireless consumer experiences.
You could argue that even in 2006 Comcast knew a solo wireless play was not really feasible in the eyes of shareholders (given the CEO's on record saying even back then
he didn't think wireless was worth it), but Cohen would probably prefer you didn't. Meanwhile the FCC would probably prefer you not mention that they have quietly condoned spectrum squatting deals just like this one for years.
Comcast's now content to sell Verizon the spectrum in exchange for Verizon being able to market LTE service to Comcast customers, a deal consumer advocates worry comes with the troublesome agreement to
reduce real competition on the wireline front. The FCC meanwhile continues to push incentive auctions, while ignoring the problems with giant incumbents who squat on spectrum because there's no "use it or lose it" restrictions on supposedly publicly-owned airwaves.
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