Verizon Wireless late yesterday filed a petition with the FCC asking the agency to reconsider conditions it imposed on Harbinger Capital Partners' acquisition of SkyTerra's spectrum – conditions that can directly impact Verizon.
The conditions the FCC imposed when it approved the transaction last week raised the ire of both Verizon Wireless and AT&T Mobility because they restrict arrangements between SkyTerra and two largest terrestrial wireless providers. Specifically, the conditions impose new commission regulation of potential agreements between SkyTerra and Verizon or AT&T that involve the use of SkyTerra's spectrum.
The filing says that Verizon Wireless was not a party to the proceeding and, until the same day the FCC's order was adopted, the record contained "no indication whatsoever" that such conditions were under consideration.
"The process used to include these conditions in the SkyTerra order was deeply flawed and inconsistent with the transparent, open and fact-driven decision-making that has been an early hallmark of your Chairmanship," said Steve Zipperstein, general counsel for Verizon Wireless, in a letter to Chairman Julius Genachowski.
Some analysts familiar with SkyTerra's plans to build out a terrestrial/satellite network in the past surmised that the real value of companies like SkyTerra lie in their spectrum, which would be attractive to carriers like AT&T, Verizon Wireless and others.
In a blog post early this week, the FCC said Harbinger's commitment to build out a network to 260 million people by 2015 and the FCC's prior review of potential leases of spectrum or capacity to the two largest incumbent carriers are conditions that provide some reassurance that the deal will ignite new broadband competition while protecting the public from any potential harms.
SkyTerra entered into an agreement to be acquired by Harbinger last year.