Verizon Mobile Video Play

In a March 30 Wall Street Journal interview, Lowell McAdam, chairman and CEO of Verizon Communications, revealed the company’s intent to roll out a new mobile video service by year end. The plan is predicated on the FCC’s approval of the company’s spectrum purchase and partnership agreement with Comcast, Time Warner Cable and Bright House Networks and Cox Communications.

The mobile video service would be made available to existing mobile and cable customers and would include an a la carte content component.

Verizon and the cable companies have provided testimony at the FCC indicating that the partnership will not be anticompetitive. Analysts have compared the deal to the failed AT&T acquisition of T-Mobile, which could not acquire regulatory approval from either the FCC or the Department of Justice.

The a la carte programming plan is a wild card in this transaction. While it could add weight to the plan advanced by Verizon and the cable companies, it must also get buy-in from content owners. Without the content owners, the plan appears speculative.

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