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"And vitally, it will put approximately 20 megahertz of prime spectrum -- spectrum that has gone unused for too long -- quickly to work across the country, benefiting consumers and the marketplace."
Aside from the cash windfall, the cable companies benefit from the deal by strengthening their long-term wireless strategy, analyst Neil Shah of Strategy Analytics told us Thursday.
"Verizon has expertise and resources to build and manage a wireless network , the capability which these cable companies lack, and thus now they can become wholesale providers using Verizon's network without bothering about [capital expenditure and operational expenditure] in exchange for the valuable spectrum," he said. "This agreement allows cable companies to bundle [Verizon] wireless service with their "triple play" cable and land-line phone option."
From Verizon's point of view, he added, it gains more spectrum to accommodate the surging data demand on its network and won't have to worry about cable companies gaining an edge by adding their own wireless service to their bundles.