Verizon's Cable Deal Would Widen Digital Divide, Lawmakers Say

A proposed deal between Verizon and four major cable companies could lead to consumers paying higher prices and having less access to high-speed Internet, a group of lawmakers said.

In a letter sent to Federal Communications Commission Chairman Julius Genachowski and Attorney General Eric Holder, more than 30 House members warned the agreement would have “far-reaching implications on the competitive landscape across the nation" and would give Verizon and the cable companies involved an "enormous advantage over their competitors." The deal appears to limit competition in voice, video, Internet and wireless markets, they said. "This could lead to reduced investment in infrastructure, job loss, fewer choices, and ultimately higher prices for consumers," the lawmakers warned. The lawmakers also claimed the deal would “eliminate thousands of good, middle-class jobs needed to build competing broadband networks." Verizon spokesman Ed McFadden said in a statement, "Over the past six months we have addressed these issues, made a persuasive case that bringing unused spectrum to the marketplace to serve millions of consumers is strongly in the public interest, and we believe we are on track for approval later this summer."