THERE HAVE BEEN BIGGER wireless deals before the Federal Communications Commission this year, but perhaps none as controversial and potentially precedent-setting as its consideration of Verizon Wireless’ proposed $2.67 billion purchase of Rural Cellular Corp. as it affects one state of the many involved in the transaction: Vermont.
Leading the charge to have the FCC block the deal or impose extensive conditions is Sen. Bernie Sanders (I-Vt.), who has backing from business and public-interest organizations in the state.
It is the same Vermont whose citizenry and elected representatives hosted a town-hall meeting in Hardwick with former FCC chairman William Kennard, a Clinton appointee, in the late 1990s, to voice concerns about an industry effort to have local regulation of antenna siting pre-empted by federal law. Industry’s federal pre-emption campaign subsequently died.
Sanders, then a House member, wrote FCC Chairman Kevin Martin in late October expressing serious concerns about the Verizon Wireless-RCC deal, outlining sweeping conditions he wants imposed. Then, on Nov. 9, the Vermont Public Interest Research Group asked the FCC to extend the public comment period in part to better ascertain the consumer impact of the No. 2 CDMA carrier acquiring GSM assets of RCC in the state. The comment cycle was to have closed Nov. 30.
Verizon Wireless and RCC opposed the 90-day extension request, arguing it would delay public benefits of the transaction. The FCC granted VPIRG’s request, though, pushing out the last comment deadline to Feb. 28.
“This is a small but important victory that demonstrates that consumers can win even against corporate giants like Verizon Wireless,” said Paul Burns, executive director of VPIRG. “Now we must demand that federal regulators deny this merger or include enforceable conditions to prevent consumers from being significantly harmed by the deal.”
Burns added: “I am very concerned about what a cellphone monopoly would mean in the state of Vermont. If the FCC approves this takeover, there must be specific conditions met: enforceable commitment to universal cellphone coverage; continued upkeep, maintenance and expansion of the GSM network; free exchange of Unicel phones to equivalent Verizon Wireless handsets; and a commitment to reasonable roaming rates and national pricing for Vermont.”
Skeptical of merger
Sanders remains highly skeptical of the Verizon-RCC tie-up. RCC, which is marketed as Unicel, provides service to 716,000 customers in 15 states in the Midwest, Northeast, Northwest and the southern regions of the United States.
“Vermonters must take a very close look at what a Verizon Wireless monopoly would mean in terms of progress toward universal service at reasonable prices,” said Sanders. “The commission’s decision to allow more time for comment on this important transaction will afford Vermonters the opportunity to voice their concerns. People are only now beginning to understand the significance of this transaction. Few things hit home more than those sitting in your pocket: your wallet, your car keys and your cellphone. This extension will appropriately allow Vermonters to be heard on an issue that affects their lives.”
Others supporting conditions on the Verizon Wireless-RCC deal are the Vermont Department of Public Service and the Vermont League of Cities and Towns.
On Nov. 9, the Department of Homeland Security asked the FCC to defer action on the deal until it and law-enforcement agencies can examine public-safety-related implications.
