Cities say spectrum deal will discourage competition

Officials and community advocates from five cities--Albany, N.Y., Baltimore, Md., Boston, Buffalo and Syracuse, N.Y.--testified to the Federal Communications Commission that they believe the spectrum deal between Verizon Communications (NYSE: VZ) and major cable TV operators would discourage Verizon from expanding FiOS TV to compete against cable TV in their communities.

Their testimony is the latest knock against the spectrum sale and cross-marketing agreement that would develop between Verizon and the cable contingent as a result.

For the most part, Verizon has avoided bringing FiOS to an urban environment, where it would have been more costly to deploy, at least in the past. More recently, the telco has been able to leverage advances in fiber technology to more cost-efficiently deploy in New York City. However, Verizon also has said previously that it doesn't plan to expand FiOS to any more new markets as it focuses in improving penetration in its current footprint.

Verizon also says that acquiring spectrum from Comcast (Nasdaq: CMCSA), Time Warner Cable (NYSE: TWC) and others will kelp it grow mobile broadband coverage that will benefit markets where it may not offer FiOS.

For more:
- check out this post at The Hill

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