Verizon is having trouble selling off its unwanted assets, as it attempts to convince the Department of Justice to approve its $3.6 billion purchase of spectrum from cable companies.
The Score is a weekly column scoring controversial events in the mobile industry. Want to get to the point? We'll break it down and give you the score.
The Setup: The Basking Ridge, N.J- based carrier's agreement to purchase spectrum from a collection of cable companies caught the eye of government officials and raised concerns that the number-one wireless provider in the U.S. was stockpiling the natural resource to lockout its competition.
Verizon is now looking to sell off its own unused spectrum to prove to the DoJ that it's willing to play fair, but its competitors are still crying foul. The carrier has been unable to drum up interest for the spectrum it's trying to sell, stalling the approval of its purchase from the cable companies.
It now seems the odds are stacked against Verizon as it attempts to push through its transaction for new spectrum. But is the company really doing anything wrong?
None of the wireless providers are interested in Verizon's spectrum because they are all against the carrier getting the approval of the DoJ to move ahead with its purchase from cable companies. Sounds like a smart move. The carriers also contend that the spectrum Verizon is looking to sell is only 700-megahertz, which is essentially useless for any company building a high-speed network. Sneaky Verizon! Verizon:-500 points
While Verizon may be playing dirty by making the DoJ believe it's giving away assets that are actually worth something, isn't it just as bad that all other carriers have a gentleman's agreement not to even entertain buying it? If there is some sort of collusion going on here then that is just as wrong. T-Mobile came out and said adamantly it does not need the spectrum Verizon is selling. Really? Maybe T-Mobile should ask its customers if they think the carrier could use the spectrum. Verizon:+500 points
Let's really think about this hard for a second. Spectrum makes carriers better. Verizon is in competition with all other U.S. phone carriers. Verizon wants to buy a bunch of spectrum to make itself better while hurting its competitors at the same time. What exactly is this company doing wrong? Sure, it's in the best interest of customers to have several competitive options, but why is it Verizon's fault if it does its job better than everyone else? Verizon:+500 points
Final Score:Verizon:+1,000 points
It seems the only thing Verizon is guilty of here is trying to be (and being) better than everyone else in their marketplace. The bottom line is that the company has more money than all of its competitors and can afford to buy the spectrum it needs to remain successful. Other carriers may want to stomp their feet and cry that Verizon is being unfair, but in reality, they're just mad because they're getting beaten.
Think about it this way: in real life, should someone not be allowed to put a second floor on their house just because their neighbor can't afford to do the same? No. Verizon shouldn't be prohibited from making itself better just because its competitors don't have the means to keep up. It's called business. It's called life.
Verizon plans to launch the Droid Incredible 4G LTE "in the coming weeks," but consumers should pass and wait.
The Incredible 4G features some decent specs: it's powered by Google's new Android 4.0 software, runs on Verizon's faster LTE network, and features a 4-inch high-resolution display, top-notch 8-megapixel camera with 28-millimeter f/2.2 lens, Beats Audio for better music and a speedy 1.2-gigahertz dual-core Snapdragon S4 chip.
So what's not to love?
1. Consider the HTC Rezound
The HTC Rezound, Verizon's fourth-quarter flagship phone, features a bigger 4.3-inch screen, with a higher 720-by-1280 pixel resolution -- that's a big difference.
The Rezound also comes with an 8-megapixel camera, a plenty-fast 1.5-gigahertz chip, and will soon run on Android 4.0 -- initially released with Android 2.3 -- and works on Verizon's 4G LTE network too.
While the Incredible is thinner, lighter, and offers NFC and Bluetooth 4.0, its only real advantage is HTC's Sense 4 -- over the Rezound's 3.5 -- a big improvement for a more streamlined interface, a 50 percent improvement in processing speed and lower power consumption.
For a new flagship phone, the Incredible offers slight upgrades in hardware. If you're considering the Incredible, give the Rezound some serious thought.
2. Consider the HTC One
The Incredible couldn't have come at a worse time. HTC is in the midst of a turnaround, after a serious decline last year. Why does that matter? The company overhauled its product line to focus entertainment, and the first batch of new phones is the... "One" series, which hit the market a few months ago.
That's right. The One is the future. The Incredible is the past.
AT&T and T-Mobile carry versions of it, but Verizon has yet to announce a launch -- but that's just a matter of time.
3. Sit Tight, HTC Is Revamping Its Products
Still, it's probably best to wait. HTC's second batch will be leaps and bounds ahead. So if you're looking at HTC, give the first generation of One phones a pass, and wait for them to work out the kinks before diving in.
4. Samsung Is on Top of Its Game
There's a reason Samsung sold over 20 million Galaxy S2 phones in under nine months. And the South Korean company just announced the successor, the S3, which also runs on Android 4.0, but features a massive 4.8-inch display, advanced "S Voice" technology that responds to spoken orders and gestures, and a 1.4-gigahertz "quad-core" -- not dual-core -- chip. It also comes with a 8-megapixel camera, but with "intelligent" camera options that tracks and adapts to what it sees you doing.
Verizon may water down the specs before releasing its version in the summer, but if you can wait a few months, it'll blow the Incredible out of the water.
5. The IPhone 5, Nuff Said
Rumors. They're all rumors, really. But still, we'll run through the list: made of liquidmetal, similar 4.6-inch screen, LTE-compatible, and other major changes. In short, it's the iPhone. Expect it sometime in June.
Bottom Line
If you're going cheap, the Rezound is a better choice. If you're sticking to HTC, wait for the next batch. And if you want the best, wait a few months.
When everyone's showing off their quad-core phones, Galaxy S3s and iPhone 5s, just don't say we didn't tell you so.
Verizon plans to launch the Droid Incredible 4G LTE "in the coming weeks," but consumers should pass and wait.
The Incredible features some decent specs: it's powered by Google's new Android 4.0 software, runs on Verizon's faster LTE network, and features a 4-inch high-resolution display, top-notch 8-megapixel camera with 28-millimeter f/2.2 lens, Beats Audio for better music and a speedy 1.2-gigahertz dual-core Snapdragon S4 chip.
So what's not to love?
1. Consider the HTC Rezound
The HTC Rezound, Verizon's fourth-quarter flagship phone, features a bigger 4.3-inch screen, with a higher 720-by-1280 pixel resolution -- that's a big difference.
The Rezound also comes with an 8-megapixel camera, a plenty-fast 1.5-gigahertz chip, and will soon run on Android 4.0 -- initially released with Android 2.3 -- and works on Verizon's LTE network too.
While the Incredible is thinner, lighter, and offers NFC and Bluetooth 4.0, its only real advantage is HTC's Sense 4 -- over the Rezound's 3.5 -- a big improvement for a more streamlined interface, a 50 percent improvement in processing speed and lower power consumption.
For a new flagship phone, the Incredible offers slight upgrades in hardware. If you're considering the Incredible, give the Rezound some serious thought.
2. Consider the HTC One
The Incredible couldn't have come at a worse time. HTC is in the midst of a turnaround, after a serious decline last year. Why does that matter? The company overhauled its product line to focus entertainment, and the first batch of new phones is the... "One" series, which hit the market a few months ago.
The One is the future. The Incredible is the past.
AT&T and T-Mobile carry versions of it, but Verizon has yet to announce a launch -- but that's just a matter of time.
3. Sit Tight, HTC Is Revamping Its Products
Still, it's probably best to wait. HTC's second batch will be leaps and bounds ahead. So if you're looking at HTC, give the first generation of One phones a pass, and wait for them to work out the kinks before diving in.
4. Samsung Is on Top of Its Game
There's a reason Samsung sold over 20 million Galaxy S2 phones in under nine months. And the South Korean company just announced the successor, the S3, which also runs on Android 4.0, but features a massive 4.8-inch display, advanced "S Voice" technology that responds to spoken orders and gestures, and a 1.4-gigahertz "quad-core" -- not dual-core -- chip. It also comes with a 8-megapixel camera, but with "intelligent" camera options that tracks and adapts to what it sees you doing.
Verizon may water down the specs before releasing its version in the summer, but if you can wait a few months, it'll blow the Incredible out of the water.
5. The IPhone 5, Nuff Said
Rumors. They're all rumors, really. But still, we'll run through the list: made of liquidmetal, similar 4.6-inch screen, LTE-compatible, and other major changes. In short, it's the iPhone. Expect it sometime in June.
Bottom Line
If you're going cheap, the Rezound is a better choice. If you're sticking to HTC, wait for the next batch. And if you want the best, wait a few months.
When everyone's showing off their quad-core phones, Galaxy S3s and iPhone 5s, just don't say we didn't tell you so.
Sprint (NYSE:S) is seeing its fortunes turn around on the iPhone, but the company's future success lies in its ability to cash in on data services, which is at odds with its unlimited plans.
Verizon is planning a big marketing push for the launch of Windows Phone 8 later this year, giving the struggling OS momentum to take on Apple and Android.
Nearly 30 million Americans, or one in six mobile users, experienced "bill shock," a sudden and unexpected jump in monthly cellular bills, and the Federal Communications Commission is battling to combat the problem.
Verizon is on a mission to acquire enough spectrum to keep it on top, as the carrier's continued success depends on data revenue generated by high-speed networks.
Think your cell phone bill is too high? Watch out -- Verizon is putting together a plan to win regulator approval to buy spectrum from cable companies, potentially undermining competition and making things worse for wireless customers.
AT&T and Verizon are battling it out for claim to the fastest 4G service, and consumers are left scratching their heads. Which one is faster? The answer is, it doesn't matter.
Comcast and Verizon are defending their spectrum sale to government officials today, while competitors object on grounds of a fair market.
In a hearing before the Senate's antitrust committee, Comcast will defend the $3.6 billion spectrum sale to Verizon, a deal being examined by the Justice Department and the Federal Communications Commission. The hearing, "The Verizon/Cable Deals: Harmless Collaboration or a Threat to Competition and Consumers?" will look at what the deal could mean for free market conditions in the wireless market.
Verizon is attempting to acquire more spectrum to boost its developing 4G LTE network, which it expects will cover nearly the entire nation by next year. The purchase includes a band of spectrum relatively unused by Comcast and other cable companies, and its acquisition could help guarantee Verizon's success in the 4G market, especially as data-hungry devices like the new iPad and upcoming iPhone 5 will rely on the network.
The deal also includes a controversial marketing component that lets cable companies and Verizon =promote each other's services, but the parties maintain it won't decrease competition.
As technology changes, different industries come together to make the best use of resources -- in this case, cable providers and mobile carriers. If the FCC and lawmakers approve the deal, the companies will get a huge boost as they try to find the best way to use and acquire resources.
But regulators could consider the spectrum acquisition a threat to fair competition, which leaves mobile companies fewer options to expand networks. It also potentially sets a precedent on the types of mergers regulators will allow at a time when communications companies are trying to decide where to place their bets for the future.
For Comcast, the nation's largest cable provider, selling the spectrum is a way to compete with mobile device manufacturers, who are edging to the top of the most powerful companies in the telecommunications industry. And, Comcast notes, the arrangement does not involve consolidation of customers, jobs, assets or operating businesses, as proposed in the rejected AT&T and T-Mobile merger.
"By enhancing the Cable Companies' and Verizon Wireless's own products and services, the Joint Venture will compete with similar solutions that AT&T, Dish Network, Google, Apple, Microsoft, and others already have introduced into the marketplace," says Comcast senior vice president David Cohen in hearing documents submitted before the Senate testimony. "This, in turn, will spur other companies to respond, perpetuating a cycle of competitive investment and innovation."
Other industry players vocally oppose the deal. The industry union group Communications Workers of America and the International Brotherhood of Electrical Workers say the partnership would form an "unchecked monopoly by the nation's largest cable and wireless companies."
Fourth-place carrier T-Mobile cautions the deal could result in higher prices and less competition, a charge that led to the demise of AT&T's acquisition of T-Mobile.
Comcast will defend its best interests to Washington officials in the Senate hearing, attempting to show regulators the needs of the industry rely on agreements over shared resources.
Since regulators are wary of creating monopoly-like circumstances when powerful providers combine, the companies will maintain this agreement brings a unique set of conditions from the main parties. If regulators decide the deal is acceptable as a means for companies to keep up with spectrum demands, it could unfurl a wave of wireless consolidation, or further agency-monitored business strategies that will inevitably affect consumer pricing and choices.
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