Verizon Wireless (NYSE:VZ) and Comcast will begin marketing each other's products in select markets. The move stems from Verizon's decision to purchase $3.9 billion worth of AWS spectrum from Comcast and other cable companies in December.
Verizon and Comcast will launch a marketing campaign in Seattle and Portland, Ore., to sell bundles of wireless, cable TV, landline and residential Internet services, according to the Philadelphia Inquirer. The marketing effort, which involves Verizon selling Comcast's Xfinity products in its stores and Comcast selling Verizon Wireless service through call centers and online sites, will expand into other markets this year and into 2013. For now, the promotion in Seattle and Portland includes a prepaid Visa card of $100 to $300 for those who sign up for Verizon Wireless/Xfinity bundles.
In December Verizon agreed to pay $3.6 billion for the nationwide AWS spectrum licenses held by SpectrumCo, a joint venture of cable companies Comcast, Time Warner Cable and Bright House Networks. Separately, Verizon said it will buy Cox Communication's 20 MHz of AWS spectrum covering 28 million POPs for $315 million. All of the deals include the option of Verizon reselling cable services and cable companies reselling Verizon service. The Department of Justice and FCC still need to approve the spectrum transactions.
Verizon spokeswoman Brenda Raney told FierceWireless that the Comcast marketing partnership will expand later this year, but declined to say by how much and when. She also declined to comment on what the marketing partnerships with the other MSOs might look like. "We certainly are looking forward to working with them," she said.
At an investor conference in December, Verizon Communications CEO Lowell McAdam hinted at how the partnerships could expand over time. McAdam said that Verizon and the cable companies want to work together to provide seamless video experiences, including content and video conferencing, across smartphones, tablets, TVs and PCs. "The cross-selling of services is just a way to get those products into the marketplace," he said.
- see this Philadelphia Inquirer article
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