Verizon scraps deal with cable for joint home, wireless services
Verizon confirms that the two sides are going their separate ways, although they will continue to sell each other services in areas where Verizon's landline business doesn't operate.
Verizon confirmed on Thursday that its joint venture with the cable companies is no more.
Chief Financial Officer Fran Shammo, speaking to investors on a conference call, briefly mentioned that the company had terminated its partnership with the cable companies -- Comcast, Time Warner Cable, and Bright House Networks -- which was originally created to build integrated services using its wireless network and cable Internet and television services.
The deal was a part of Verizon's acquisition of spectrum from the cable companies, and an element of the transaction that consumer advocacy groups and regulators took issue with. Many feared the cooperation between a telco and cable company would have led to decreased competition and higher prices.
The partnership was dissolved in August, according to a Verizon representative. While the joint venture was set up to bring integrated wireless and wireline services, recent technology advances allow both sides to offer such services without the need of a JV, the representative said.
Verizon is looking to build its own set of integrated services by combining its home FiOS Internet and video services with Verizon Wireless. It hasn't yet been able to do that properly because Verizon Wireless has been jointly owned by Verizon and Vodafone. But Verizon will have more freedom after buying out Vodafone's stake in the business.
Verizon and the cable companies will continue to sell their respective services at various distribution channels. Verizon Wireless stores not in the Verizon landline territory, for instance, will be able to push cable services.