Vt. senator questions cell phone deal

Vt. senator questions cell phone deal

	Published : Wed, 31 Oct 2007 23:27 By : Agencies Print this Story

MONTPELIER, Vt. (AP) - Sen. Bernie Sanders, I-Vt., is asking federal regulators to block or put significant conditions on Verizon Wireless' planned acquisition of Unicel, saying the cell phone deal could leave Verizon with a monopoly in the state and many visitors without usable cell phone service.

Sanders said the two companies are the only cell phone carriers with a significant presence in Vermont, and that for Verizon to take over Unicel's customers will create a 'de facto monopoly.' He wrote Monday to the Federal Communications Commission about the matter, and made his letter public on Wednesday.

'Verizon Wireless' proposed acquisition of Unicel will have a substantial impact on the economic health of communities across Vermont,' Sanders wrote. 'In addition, 14 other states would be adversely affected if this acquisition was to go through as proposed and the concerns expressed herein may well apply to some of them as well.'

Vermont's junior senator said he's particularly worried about a technical issue connected with cell phone service that could make many visitors to Vermont unable to get service on their phones.

As things stand now, Verizon uses one type of cell-phone technology, called CDMA, while Unicel, owned by Rural Cellular Corp., uses the other major type, GSM. If Verizon is the sole cellular phone company serving Vermont, GSM would disappear, Sanders said, making subscribers of AT&T and other companies that use GSM unable to use their phones.

'Vermont's economy could be severely disadvantaged when tourists or prospective businesses find their cell service curtailed or very costly due to roaming charges,' Sanders wrote. 'That is why the GSM network needs to be maintained, upgraded, and expanded in perpetuity by Verizon Wireless or sold to another party that will commit to the same.'

The senator said in an interview that he had been in touch with Verizon representatives and that they had committed to keeping the GSM network operational in Vermont after taking over Unicel's assets in the state, but he said they promised to do so for only 18 months.

Nancy Stark, a spokeswoman at Verizon Wireless headquarters in New Jersey, said her company believes the deal 'is in the best interest of Vermont consumers. It'll give the rural customers the most reliable wireless network in the country. It will also give access to wireless broadband. We'll continue to work with the Department of Justice and the FCC on the review of this transaction.'

On the technology question, Stark said more U.S. customers have CDMA than the GMS cell phones. 'CDMA is our business,' she said.

Stephen Wark, spokesman for the state Department of Public Service, said states are pre-empted under federal law from having much if any sway over cell phone regulation.

He said the department had been working with Sanders' office on the issue. 'The senator's observations are good ones,' Wark said. He added that the cell phone industry is coming out with 'multi-network' phones that work on both CDMA and GSM networks, but it was an open question whether the costs of acquiring those phones should be imposed on consumers.