Verizon Wireless Expands With New Spectrum Purchase

Cellular giant Verizon Wireless has hit a deal with Atlanta-based cable firm Cox Communications to acquire some of its airwave licences for $315 million.

Under the terms of the deal, the two companies will also sell each others' services in their respective stores and other sales channels throughout the country.

The deal is similar to that Verizon hit with other three cable firms around two weeks ago, when Time Warner Cable, Bright House Networks and Comcast penned co-marketing deals with Verizon.

The cellphone airwaves Verizon purchasing from Cox Communications are in the same frequency band as the spectrum Verizon acquired from other cable firms. It covers 28 million people, mostly in areas where Cox Communications offers cable service.

Cox Communications President Pat Esser said that the deal would be beneficial to the cable firm’s some 6 million customers.

Speaking on the deal, Esser said, “These agreements provide Cox customers with key enablers to mobility, such as access to Verizon Wireless’ 4G LTE network and iconic wireless devices.”

But, the Verizon’s agreements with cable firms also sparked concern by public interest groups, which feel that lack of real competition for cable and mobile phone service, there will be no pressure to lower price or innovate.

The deal between Verizon and Cox is yet to be approved by regulators.