Verizon Takes Aim Against Regulation

Cites Google's reported plans to become MVNO as sign of intense competition
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Bedminster, N.J. — Google’s reported plan to become an MVNO (mobile virtual network operator) reselling Sprint and T-Mobile service “is another prime example of the intensity of competition” in wireless and “another reason why this industry does not need to be regulated,” Verizon Communications CFO Fran Shammo said in a conference call with financial analysts.

The Wall Street Journal reported on Google’s plans but said it wasn’t clear how aggressive Google will be in marketing service under its own brand name or when it would begin to offer service.

The reseller (MVNO) model has been around for a long time and isn’t always easy to implement, he said. MVNOs must build infrastructure to bill and support customers, he noted. When Google enters, he said, “it’s just another competitor.”

Shammo also lashed out at the FCC’s plans to regulate wired and wireless broadband like a public utility under Title II of the Communications Act. The FCC will take an “extremely risky path” if it adopts net neutrality regulations, he said. In countries with high regulation, telecom companies have not invested in their networks,” he said. The regimen will also be tied up in “all kinds of litigation,” he said.

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