Some want to undo the $1 billion deal meant to improve Verizon's network

The $1 billion Verizon spectrum deal that was approved by the FCC – and which is meant to enhance Verizon's network – is not to the liking of some rural wireless carriers and consumer advocates.

The main concern is that Verizon, being the giant that it is, is absorbing too much spectrum. This stops smaller companies from competing adequately with the behemoths. This isn't just Verizon, though: AT&T and T-Mobile are also in the business of buying out smaller businesses.

• T-Mobile vs Verizon vs AT&T: Reliability, plans, coverage

Has Verizon taken too much?

As mentioned above, Verizon got the green light from the FCC to acquire spectrum from Array Digital Infrastructure (formerly known as UScellular) in a $1 billion deal. Now, smaller carriers and consumer advocacy groups are urging the FCC to revisit its decision.

The transaction, which officially closed on June 1, gives Verizon additional AWS-1, AWS-3, and PCS spectrum licenses covering roughly 8% of the US population. Verizon is expected to use the airwaves to strengthen network capacity and improve service in affected markets.

In short: if you're on Verizon, you should be getting better service. Hopefully, without any price hikes on your plan, but I can't guarantee you that – look around what's happening with prices of everything!

But why oppose it?

The challenge is being led by the Rural Wireless Association (RWA), which argues that the deal is part of a larger pattern of spectrum consolidation among the nation's three largest wireless carriers.

The group says Verizon, AT&T, and T-Mobile have all been buying significant amounts of spectrum in recent transactions, leaving smaller and rural providers with fewer opportunities to acquire the airwaves needed to expand and compete.

According to the RWA, the overall impact of these deals could make it harder for regional carriers to remain competitive, particularly in rural areas where access to spectrum is critical for network growth. The group believes the Verizon transaction should receive additional scrutiny because it adds to a growing concentration of spectrum holdings among the biggest operators.

The organization also argues that the FCC's Wireless Telecommunications Bureau approved the Verizon deal using reasoning that had not been formally considered by the agency's commissioners. Specifically, the bureau concluded that cable companies offering wireless service through Verizon's network were competitors in the affected markets.

The RWA contends that such a policy determination should have been reviewed and voted on by the full commission rather than approved at the staff level.

So far, the FCC under Chairman Brendan Carr has largely dismissed concerns about spectrum concentration and has continued approving similar transactions.

Verizon customers wouldn't want to see this go away

For Verizon customers, the most important thing is that the deal remains approved for now. If nothing changes, the additional spectrum should help Verizon improve network performance and handle growing data demand in some markets.

But the bigger question is whether regulators will continue allowing the largest carriers to buy up more spectrum or start placing stricter limits on future deals. That debate could shape wireless competition and coverage expansion for years to come.

On the other hand

I think smaller carriers have a valid concern that too much consolidation could make it harder for them to compete, especially in rural areas. My view is that network improvements should be encouraged, but regulators should continue examining whether these large spectrum purchases are preserving enough competition to benefit consumers in the long run.

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